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Item No. 14 memorandum TO: Mayor, Mayor Pro -Tem and City Council Rose Beverly, City Manager FROM: Stephanie H. Harris, City Attorney SUBJECT: Participation in Purdue Pharma/Sackler Family Opioid Settlement DATE: August 11, 2025 BACKGROUND: As you may be aware, the opioid crisis in the United States has generated massive amounts of litigation. The city has previously elected to participate in litigation brought by the Texas Office of the Attorney General as to several pharmaceutical manufacturers and distributers, including but not limited to Teve, Janssen, Endo, Walmart, Allergan, CVS, and Walgreens. The city has recently been notified of a new settlement of national litigation involving Purdue Pharma and the Sackler family in connection with Purdue's bankruptcy pleadings. Purdue patented and marketed OxyContin, and members of the Sackler family both ran and owned the controlling interest in Purdue during the relevant time period. STATUS OF ISSUE: The attached documents have information about what the city must do to participate; primarily, we must execute and return the attached "Exhibit K—Subdivision Participation and Release Form" by September 30, 2025. In essence, in order to participate in the national settlement, the city must release Purdue and the Sacklers from all other possible claims related to the opioid crisis. So far, the Opioids Implementation Administrator has not indicated what if anything the city may receive as a part of the settlement or any restrictions placed on the use of settlement proceeds. Past settlements have restricted the use of proceeds to those uses directly related to the crisis such a medical expenses and opioid education and abuse prevention. BUDGET: Unknown, as set forth above. Should we determine that there are too many restrictions and or requirements attached to acceptance of settlement funds in the future, the city can decline them at that time, but in order to even get that chance, we would need to meet this September 30`h deadline. RECOMMENDATION: Make a motion to participate in the New National Opioids Settlement regarding Purdue Pharma and the Sackler family and authorize the City Manager to execute and submit the Participation and Release Form.