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Home My WebLink About02 Actions Needed by City on Opioid Class Action Suit as to "Six Remnant Defendents" City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org STAFF REPORT Meeting Date: April 7, 2026 Item #: 2 Contact Name: Department Director: Contact Number: City Manager: Craig Shadrix Subject: Actions Needed by City on Opioid Class Action Suit as to “Six Remnant Defendants”. (City Attorney Geller) Background Summary: On September 7, 2021, the City Commission approved on the Consent Agenda Resolution 2021-008 to Participate in Opioid Litigation Settlement as described in a Memorandum of Understanding between the State of Florida and local governments. The Memorandum of Understanding established a unified plan for allocating and using opioid settlement proceeds including for programming and services to expand the availability of treatment for individuals impacted by substance use disorders. On September 17, 2021, the City approved on the Consent Agenda a Contingency Fee Agreement with the Romano Law Group and other affiliated law firms to represent the City of Ocoee in national litigation against opioid manufacturers. The Romano firm fronts litigation costs. in the litigation, the Romano firm and most other participating law firms agreed that, in lieu of charging a 20% contingency fee, they will accept payment from separate attorneys’ fee funds established as a part of each settlement. Ocoee and other local governments will keep 100% of the funds ultimately allocated to them. Attorney Eric Romano estimates that this will effectively reduce attorneys’ fees to approximately 8-10% of the amounts recovered. On August 19, 2025, the City Commission authorized the Mayor to execute a Participation Agreement as to the settlement with the Sackler family their company, Purdue Pharma, which marketed the pain medication OxyContin. Attorney Eric Romano has advised that the proposed Bankruptcy Plan will fund approximately $8 billion over 15 years to resolve opioid-related claims, including $6.5 billion from the Sackler family. The United States Bankruptcy Court for the Southern District of New York held a hearing on November 18, 2025, and approved of the Purdue Bankruptcy Plan. On July 28, 2025, the City received formal notice of settlements with eight pharmaceutical companies or their affiliates — Alvogen, Inc., Amneal Pharmaceuticals, On September 7, 2021, the City Commission approved on the Consent Agenda Resolution 2021-008 to Participate in Opioid Litigation Settlement as described in a Memorandum of Understanding between the State of Florida and local governments. The Memorandum of Understanding established a unified plan for allocating and using opioid settlement proceeds including for programming and services to expand the availability of treatment for individuals impacted by substance use disorders. On September 17, 2021, the City approved on the Consent Agenda a Contingency Fee Agreement with the Romano Law Group and other affiliated law firms to represent the City of Ocoee in national litigation against opioid manufacturers. The Romano firm fronts litigation costs. in the litigation, the Romano firm and most other participating law firms agreed that, in lieu of charging a 20% contingency fee, they will accept payment from Page 12 of 812 City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org separate attorneys’ fee funds established as a part of each settlement. Ocoee and other local governments will keep 100% of the funds ultimately allocated to them. Attorney Eric Romano estimates that this will effectively reduce attorneys’ fees to approximately 8-10% of the amounts recovered. On August 19, 2025, the City Commission authorized the Mayor to execute a Participation Agreement as to the settlement with the Sackler family their company, Purdue Pharma, which marketed the pain medication OxyContin. Attorney Eric Romano has advised that the proposed Bankruptcy Plan will fund approximately $8 billion over 15 years to resolve opioid-related claims, including $6.5 billion from the Sackler family. The United States Bankruptcy Court for the Southern District of New York held a hearing on November 18, 2025, and approved of the Purdue Bankruptcy Plan. On July 28, 2025, the City received formal notice of settlements with eight pharmaceutical companies or their affiliates — Alvogen, Inc., Amneal Pharmaceuticals, Inc., Apotex, Corp., Hikma Pharmaceuticals USA, Inc., Indivior Inc., Mylan N.V., Sun Pharma, and Zydus Pharmaceuticals U.S.A., Inc. The voluminous Settlement Agreements, available at: Additional Settlements – National Opioids Settlement, will provide $844 million in cash payments and $355 million in medications for treating opioid addition and reversing overdoses. Local governments will have an option to convert a portion of the medications into $87 million in additional cash. The Settlement Agreement also consents to injunctive relief severely restricting each company’s future opioid sales and marketing. On August 19, 2025, the City Commission authorized the Mayor to execute a Participation Agreement, opting-in to the settlement, which the City duly submitted. “Six Remnant Defendants” On March 3, 2026, the City received formal notice of settlement with six regional distributors/dispensers of opioids, called the “six remnant defendants” and identified as Associated Pharmacies, Inc (and American Associated Pharmacies); J M Smith Corporation; Louisiana Wholesale Drug Company, Inc.; Morris and Dickson Co.; North Carolina Mutual Wholesale Drug Company, Inc.; and United Natural Foods, Inc. (including its subsidiaries SuperValu and Advantage Logistics). The proposed settlement will require the Six Remnant Defendants to pay a combined $97.625 million in cash for purposes of abating the opioid epidemic. If the City elects to participate, the Settlement will result in a one-time settlement payment to the City. Settlement allocations should follow the model used in previous national settlements and the 2021 Memorandum of Understanding between the State of Florida and local governments. More information about the Remnant Defendant settlement is available at: Remnant Settlements – National Opioids Settlement. The City’s class action counsel, Eric Romano, is recommending that the Mayor sign an online Participation form for the City to receive a pay-out from the Opioid class action lawsuit as to “six remnant defendants.” Issue: Should the Honorable Mayor and City Commission authorize Mayor Johnson to sign the Participation Form and any other necessary documents to participate in the Remnant Defendant class action Settlement with the six regional distributors/dispensers of opioids? Recommendations: The City Attorney and Class Action Counsel recommend the Honorable Mayor and City Commission authorize the Mayor to sign the Participation Form and any other necessary documents for the City to participate in the Remnant Defendant Settlement. Attachments: 1. Resolution 2021-008 Page 13 of 812 City of Ocoee ▪ 1 N. Bluford Avenue ▪ Ocoee, Florida 34761 Phone: (407) 905-3100 ▪ www.ocoee.org Financial Impacts: It is anticipated that the City will receive revenues of an undetermined amount by participating in the Settlements. 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