Earlier this month, Attorney General Bob Ferguson announced a $518 million settlement with several major opioid litigants. What does this mean for cities?

In late March 2022, Keller Rohrback, a law firm representing a coalition of 33 cities and counties litigating against opioid manufacturers, held a meeting to discuss a memorandum of understanding (MOU) that establishes a framework for distributing and sharing settlement proceeds from current opioid litigation throughout Washington. The MOU would provide a direct payment of settlement proceeds to cities with over 10,000 residents, while cities under 10,000 would benefit from proceeds distributed through regional health authorities.

If you were unable to attend the briefings, you can access the recordings of both briefings linked below. While the general content was the same, each session contained different questions from attendees.

• March 30 recording
• March 31 recording

Due to the tentative settlement agreement reached by the state, many cities are now curious about the status of the MOU. As set forth in the MOU, it is intended to govern how proceeds will be allocated among counties and cities in the state of Washington. It is also intended to apply to all future settlement(s) with any opioid-related defendant, including the settlement with the three named opioid distributors: McKesson, Cardinal Health, and AmerisourceBergen.

The MOU does not set forth the percentage that local governments will receive relative to the state. That will be subject to a separate agreement that is currently being negotiated with the AG’s office. As agreements and settlements are finalized, Keller Rohrback will send a separate communication to cities regarding next steps.

As a reminder, Keller Rohrback is not outside counsel to the non-litigating local governments in Washington state and you should consult with your city attorneys and/or legal departments regarding the legal ramifications of entering into the MOU.

AWC is facilitating the sharing of information between Keller Rohrback and cities. AWC is not part of the litigation and does not have a position on the pending litigation or the settlement offers. The information contained in these materials is for informational purposes and should not be considered legal advice. Each city will need to determine its own course of action in consultation with its legal counsel.