In early May, Attorney General Bob Ferguson announced a $518 million settlement with the nation’s three largest distributors of prescription opioids. Now, to receive a portion of those funds, cities with a population over 10,000 need to sign onto a settlement agreement.

In a letter sent in early June to cities with a population over 10,000, the Attorney General’s (AG) Office provided details on the settlement and outlined the requirements for cities to receive funds. Per the settlement agreement, 100% of litigating Washington cities and 90% of non-litigating cities with a population over 10,000 will need to agree to the settlement by executing and returning a participation form by September 23, 2022.

Cities that receive monies under the settlement could use funds to:

• Support individuals in treatment and recovery, including providing comprehensive wrap-around services to individuals with opioid use disorder, including housing, transportation, education, job placement, job training or childcare;
• Address the needs of pregnant women and their families, including those with babies with neonatal disorder;
• Prevent opioid misuse, overprescribing and overdoses through, among other strategies, school-based and youth-focused programs, public education campaigns, increased availability and distribution of naloxone and other drugs that treat overdoses, additional training and enhancements to the prescription drug monitoring program; and
• Support first responders, among other strategies.

At this time estimates of distribution amounts are not available. Once details of the agreement are resolved, the AG will provide further details on distribution amounts.

The AG’s agreement is distinct from the Memorandum of Understanding (MOU) previously sent to cities by AWC on behalf of Keller-Rohrbach. The Keller-Rohrback (KR) MOU applies to a separate settlement negotiated by the firm on behalf of local governments they represented in a lawsuit brought by the locals against opioid manufacturers and distributors. The formulas used by both the AG and KR are very similar in how settlement monies will be distributed to local governments. At this time, there is no connection between the AG’s settlement and the settlement being coordinated by Keller Rohrback. However, that could change once an allocation agreement is finalized.

If you have questions about the AG settlement please contact: Jeffrey Rupert

If you have questions about the KR settlement please contact: David Ko or Arden Wilson.

AWC is not a party to the litigation and does not have a position on a city’s decision to sign the agreements. AWC encourages each city to consult their city’s counsel on the best course of action to take on behalf of your city.