Josephine County opts into Purdue Pharma bankruptcy settlement; county to receive roughly $1.08 million over 15 years

The Josephine County Board of Commissioners voted unanimously to opt into a proposed nationwide settlement related to Purdue Pharma and to approve Purdue Pharma's bankruptcy plan.

Wally Hicks, legal counsel to the county, told the board a proposed settlement with Purdue Pharma and members of the Sackler family “contemplates that the Sacklers will be paying an aggregate of $6,500,000,000 in 16 payments over 15 years, including 1,500,000,000 on the settlement's effective date.” Hicks said the county's share from the direct settlement component would translate to roughly $1,080,000 over the course of the 16 payments in 15 years.

The settlement money is separate from amounts that may be paid from the Purdue estate, Hicks said. He also described the participation process: eligible subdivisions within each participating state decide whether to take part in the direct settlement while votes are solicited concurrently on Purdue's bankruptcy plan. Hicks noted that Josephine County previously opted to be a litigating subdivision in early opioid litigation, which gives it the option to vote on the bankruptcy plan.

Hicks told the board the county has already received funds from earlier opioid-related settlements: about $2.3 million has accumulated in the county's receipt account, of which $484,000 has been spent and allocated, leaving approximately $1.8 million on hand and a projected $3.4 million still to come in from other settlements.

Commissioner Smith moved to enter the county into the proposed Purdue settlement and to approve the proposed Purdue bankruptcy plan; Commissioner Barnett seconded. At roll call, Commissioners Smith, Barnett and Black each voted yes and the motion carried 3-0.

Votes at a glance

- Opt into proposed Purdue Pharma settlement and approve Purdue Pharma bankruptcy plan — Motion by Commissioner Smith; second by Commissioner Barnett; vote: Smith yes, Barnett yes, Black yes; outcome: approved (3-0). - Appoint commissioners as representatives to the Josephine County Solid Waste Agency — Motion by Commissioner Barnett; second by Commissioner Smith; vote: Smith yes, Barnett yes, Black yes; outcome: approved (3-0). - Approve consent calendar (minutes and board journal) — Motion by Commissioner Smith; second recorded; vote: Smith yes, Barnett yes, Black yes; outcome: approved (3-0).

Why this matters: opioid-related settlements can provide long-term, restricted and unrestricted funds for county programs, including public health and treatment services. The county's decision to participate commits Josephine County to the settlement process and to voting for Purdue's bankruptcy plan as a litigating subdivision.

Board members and county staff did not adopt a detailed spending plan for the new funds at the meeting. Hicks and the commissioners emphasized that settlement payments will be received over many years and that additional estate payments may be available on the settlement’s effective date.

Clarifying details provided at the meeting included the $6.5 billion aggregate figure for Sackler payments, the $1.5 billion payment on the effective date, the county’s projected roughly $1.08 million share from the settlement’s direct component, the $2.3 million already in the county receipt account, $484,000 previously spent/allocated, and approximately $1.8 million on hand.