To: Board of Supervisors
From: County Counsel
Meeting Date: March 14, 2023
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Department Contact: |
Christian Curtis |
Phone: |
707-234-6885 |
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Item Type: Consent Agenda |
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Time Allocated for Item: N/A |
Agenda Title:
title
Approval of Backstop Agreements with the Barron & Budd, P.C., and the California Attorney General in Relation to the Settlement Agreements with Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively “Janssen”) Settlement and McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation (collectively “Distributors”) Settlement
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Recommended Action/Motion:
recommendation
Approve backstop agreements with the Barron & Budd, P.C., and the California Attorney General in relation to the settlement agreements with Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively “Janssen”) Settlement and McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation (collectively “Distributors”) Settlement; and authorize Chair to sign same.
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Previous Board/Board Committee Actions:
This Board previously approved an agreement with Barron & Budd, P.C., Agreement No. 18-045, effective date April 22, 2018, under which Barron & Budd would provide legal services for the County to litigate, pursue and resolve claims and remedies against certain opioid manufactures and distributors.
Summary of Request:
On August 6, 2021, Judge Polster of the US District Court for the Northern District of Ohio issued an Order in In Re National Prescription Opiate Litigation, addressing contingent attorney fee contracts between political subdivisions eligible to participate in the McKesson Corporation, Cardinal Health, Inc., and AmerisourceBergen Corporation (collectively “Distributors”) Settlement and the Johnson & Johnson, Janssen Pharmaceuticals, Inc., Ortho-McNeil-Janssen Pharmaceuticals, Inc., and Janssen Pharmaceutica, Inc. (collectively “Janssen”) Settlement their respective counsel.
Pursuant to the terms of these Subdivision Backstop Agreements (“Backstop Agreements”) the County may, use funds that it receives from the Janssen and Distributors Settlement CA Subdivision Funds to pay a contingent fee of 3% to Baron & Budd on County’s total recovery from Janssen and Distributor Settlement CA Subdivision Funds and Janssen and Distributor CA Abatement Accounts Funds (“County Recovery”).
Under the terms of this agreement Baron & Budd shall apply for attorneys’ fees from the national Attorney Fee fund and costs from the national Cost Funds. The 3% payment from County to Baron & Budd, together with any contingency fees that Baron & Budd may receive from the national Attorney Fee Fund, will not exceed a total contingency fee of 15% of the total gross recovery of County from the Janssen Settlement CA Subdivision Fund and the Janssen CA Abatement Accounts Fund. In the event Baron & Budd receives attorneys’ fees from the national Attorney Fee Fund that result in an excess of a 12% contingency fee, the County’s obligation to pay a contingency fee to Baron & Budd pursuant to this Backstop Agreement will be reduced proportionally.
Alternative Action/Motion:
Do not approve and provide direction to staff.
Does This Item Support the General Plan? N/A
Strategic Plan Priority Designation: A Safe and Healthy County
Supervisorial District: All
vote requirement: Majority
Supplemental Information Available Online At: n/a
Fiscal Details:
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source of funding: N/A |
budgeted in current f/y: N/A |
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current f/y cost: N/A |
if no, please describe: |
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annual recurring cost: N/A |
revenue agreement: N/A |
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budget clarification: N/A |
Agreement/Resolution/Ordinance Approved by County Counsel: Yes
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CEO Liaison: Executive Office |
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CEO Review: Yes |
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CEO Comments:
FOR COB USE ONLY
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Executed By: Atlas Pearson, Senior Deputy Clerk |
Final Status: Approved |
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Date: March 14, 2023 |
Executed Item Type: Interim Agreement Number: *23-034 Executed Item Type: Interim Agreement Number: *23-035 |
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