title
Resolution to Authorize Participation in Additional Opioid Litigation
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Department: |
City Attorney’s Office |
Meeting Date: |
4/21/2026 |
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Contact Name: |
Meredith Everhart |
Public Hearing: |
No |
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Contact Phone: |
910-341-7820 |
Advertising Date/Advertised By: |
N/A |
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Attachments: |
Attachment #1: Resolution |
PURPOSE:
The purpose of this resolution is to approve the City’s participation in additional opioid litigation involving six (6) “Remnant Defendants” who were not part of the original National Opioid Litigation, but who have reached settlements agreements with local and state governments over their participation in the national opioid crisis.
BACKGROUND:
The City of Wilmington has been at the forefront of the National Opioid Litigation since its inception, resulting in settlements that will continue to distribute funds to the City from various manufacturer, pharmacy, and distributor defendants for at least fifteen (15) more years. During the course of this litigation, a Memorandum of Agreement (“MOA”) was entered into between the State of North Carolina and all participating counties and cities related to how settlement funds would be distributed throughout the State, and setting forth rules for how the settlement funds could be used to address the opioid crisis. Similarly, the City of Wilmington entered into an additional interlocal agreement (“ILA”) with New Hanover County to combine all settlement funds received by the City into the County's settlement funds, to achieve the greatest benefit for citizens receiving opioid-related services.
There are six (6) entities, referred to as the “Remnant Defendants,” who were not made defendants during the original opioid litigation, but who have nonetheless decided to enter into settlement agreements related to their contribution to the national opioid crisis. These defendants include Associated Pharmacies, Inc., 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., and the claims against these defendants are that they failed to properly monitor orders and misrepresented the use of prescription opioids. The total amount of settlement funds, distributed nationwide, is approximately $720,000,000, with approximately $97,625,000 anticipated to come to the State of North Carolina.
Because the Remnant Defendants were not part of the original National Opioid Settlement, these settlement funds are not subject to the State MOA, and they will come directly to the City rather than flow to the County under the ILA. The percentage of settlement funds is set forth in the settlement agreement. In order to receive these funds, City Council must authorize the City Manager and/or the City Attorney to sign off on participation in the settlement, which is the purpose of this resolution.
budget
BUDGET IMPACT:
The City will receive funds directly from this settlement in an amount equal to 0.0043246782% of all settlement funds received from the six (6) Remnant Defendants.
recommendation
RECOMMENDATION / ACTION REQUESTED:
Passage of the resolution is recommended.