TO: LINDA REICH, CITY MANAGER
FROM: KEVIN MENSEN, CHIEF OF POLICE
SUBJECT
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Adoption of Resolution No. 2025-054 authorizing approval of Opioid Settlement Agreements with Pharmacy Chains Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus.
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RECOMMENDATION
Adoption of Resolution 2025-054 authorizing the City to enter into Settlement Agreements with Alvogen, Amneal, Apotex, Hikma, Indivior, Mylan, Sun, and Zydus to resolve lawsuits accusing pharmacy chains of mishandling opioid pain drugs, agree to the terms of the related State-Subdivision Agreement, and authorize entry into the related State-Subdivision Agreement with the Attorney General.
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FISCAL IMPACT
The actual amount the City will receive (and pass through to the County) from the settlement depends on a variety of factors, including the number of California municipalities participating.
CITY OF CHINO MISSION / VISION / VALUES / STRATEGIC ISSUES
The recommendation detailed above further the City’s values and strategic issues that serve as key pillars on which identified priorities, goals, and action plans are built, by fostering:
• Positive City Image
• Financial Stability
• Responsible Long-Range Planning
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BACKGROUND
A new group of national opioid settlements totaling up to $720 million has been reached with eight additional opioid manufacturers. These settlements are part of broader nationwide litigation efforts to hold opioid manufacturers accountable for their role in the opioid epidemic. These settlements are separate from the Purdue/Sackler bankruptcy settlement and prior agreements with major distributors and retailers.
Each participating jurisdiction must affirmatively opt in by October 8, 2025, to be eligible for any share of the funding. Subdivisions do not need to have joined previous settlements to participate in these new ones.
ISSUES/ANALYSIS
In California, settlement oversight remains coordinated through the Department of Health Care Services (DHCS), which sets guidelines for appropriate fund use. Settlement funds must be used for opioid abatement purposes. Examples of eligible uses include:
- Narcan (Naloxone) access and training for first responders
- Youth prevention and education programs
- Behavioral health and substance use disorder treatment
- Diversion programs and harm reduction strategies
- Community recovery support partnerships
Manufacturer Contributions (if maximum participation is reached):
- Mylan: up to $290M over 9 years
- Amneal: up to $74M (plus $177M in Narcan or $44M cash)
- Hikma: up to $98M (plus $35M naloxone or $7M cash)
- Indivior: up to $75M (plus up to $140M in treatment products)
- Apotex: up to $65M
- Alvogen: up to $19M
- Sun: up to $32M
- Zydus: up to $15M
The settlements also impose injunctive relief to restrict marketing, sales, and distribution practices and require safeguards to prevent diversion of opioids.
As with prior settlements, jurisdictions must sign and return formal documentation to participate. The City of Chino has historically opted to have San Bernardino County administer its share of opioid settlement funds. This approach has minimized local administrative burdens but also meant no funds have been directly received for City-run programs.
If the City elects to participate in these new settlements, it is recommended that we again designate the County to administer our share. This allows continued access to regional support resources while preserving the opportunity to receive direct funds in the future should an eligible program be identified. Prior settlement administrators have confirmed this flexibility.
Approval of the attached Resolution would authorize the City Manager to carry out all necessary acts to allow the City to participate in this settlement agreement, including the execution and transmittal of all required documents. If the City Council chooses not to participate, Chino’s allocation will be redistributed to other agencies participating in the settlement rather than being passed on to the County of San Bernardino.
Attachment: Resolution 2025-054