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Waupaca County approves joining Kroger opioid settlement, establishes abatement and attorney-fee accounts
Summary
The Waupaca County Board unanimously approved a resolution to participate in a settlement with The Kroger Co. related to multidistrict opioid litigation, directing proceeds into an Opioid Abatement Account and authorizing an Attorney Fees Account to fund law-firm fees; approval by the Legislature's Joint Committee on Finance is required before settlement funds are finalized.
The Waupaca County Board of Supervisors voted 26-0 on July 16 to authorize the county to enter the settlement agreement with The Kroger Co. related to the nationwide opioid litigation and to take related administrative steps to receive and manage settlement proceeds.
The resolution directs the county to deposit proceeds into an Opioid Abatement Account to be used only for approved opioid-abatement purposes and authorizes creation of a separate Attorney Fees Account to hold funds reserved for payment of outside counsel. The measure instructs the board chair or designee to execute the Settlement Agreement and an Addendum Two to the State-Local memorandum that allocates proceeds among Wisconsin participating subdivisions, provided the county’s percentage is substantially similar to the draft shown to the board.
Why it matters: the settlement stems from coordinated cases in In re: Opioid Litigation (MDL 2804). Wisconsin law (Wis. Stat. §165.12 and 2021 Wis. Act 57) requires the Legislature’s Joint Committee on Finance to approve the statewide settlement terms before the settlement takes effect for Wisconsin local governments and describes how proceeds must be allocated and restricted. The resolution notes statute-driven distribution of proceeds (70% to local governments that are participating parties, 30% to the State) and references the state-local memorandum that governs intra-state allocation.
Key financial mechanics spelled out in the resolution include a county obligation, under its engagement agreement with outside counsel, to pay up to 25% of any proceeds to those law firms (fees, costs and disbursements). The resolution also directs an escrow agent to establish an Attorney Fees Account to hold up to, but not exceeding, 20% of the county’s allocated proceeds as a local backstop for attorney-fee payments; the resolution contemplates the law firms will also seek payment from a national fee fund established under the Settlement Agreement.
The Finance Committee had recommended the measure for introduction. Supr. Malvik-Shower moved the adoption and Supr. Bosquez seconded; the board approved the resolution unanimously.
Next steps: The county’s participation and any receipt of settlement funds are contingent on final execution of settlement documents and approval by Wisconsin’s Joint Committee on Finance. The resolution authorizes the county’s corporation counsel to finalize and execute ancillary documents necessary to implement the settlement and the county’s fee-accounting arrangements.
