Josephine council backs Purdue Pharma bankruptcy plan allowing city to claim settlement funds

The City of Josephine voted to approve a resolution accepting the plan of reorganization in Purdue Pharma’s bankruptcy settlement, a step that allows political subdivisions to opt into the national settlement and preserve a share of the distribution rather than pursuing separate litigation against the Sackler family.

City staff described two components of the broader settlement: an estate settlement and a separate direct-settlement channel for participating governmental entities. Under the plan, roughly $1.5 billion is an initial component and additional payments and Purdue assets will provide billions more over time; the plan dedicates funds for opioid addiction treatment, distribution of reversal medications and a document repository of internal materials. Staff explained the settlement is opt-in: participating entities release claims against the Sackler family in exchange for a share of the reorganized assets and cash.

City attorney/staff said the State of Texas will receive a substantial allocation and that Collin County is expected to receive roughly $1.3 million under the broader allocation. Locally, staff estimated Josephine’s likely share would be modest — staff earlier cited a possible range of about $800 to $1,200 under prior disbursements — but recommended the city accept the plan so the funds can be used for treatment, reversal medications and education as intended by the settlement.

A staff member noted the settlement includes document disclosure requirements and funds for public-benefit functions; staff advised keeping records and ensuring funds are spent in accordance with the designated purposes.

The council adopted the resolution to approve the bankruptcy plan. Council members said they favored accepting settlement funds for local use rather than forgoing the allocation and pursuing separate litigation.