• On Council authority in 2019, the City initiated litigation in 2019 against numerous manufacturers, distributors, and retailers of opioids.
• On January 22, 2024, the State of Washington reached a settlement with Johnson & Johnson that is contingent upon every litigating government entity in Washington joining the agreement.
• By joining the Agreement, the City of Vancouver would receive an allocated payment estimated to be $953,102.70.

Since 2015, local governments around the Country have been united in efforts seeking to hold the manufacturers, distributors, and pharmacies of opioids responsible for the harms caused to their residents. The City of Vancouver joined this fight in 2019, filing suit against a number of manufacturers, distributors and pharmacies. That lawsuit was then transferred to the Northern District of Ohio as part of a nationwide multi-district litigation. The lawsuit has been pending there ever since. The City has already joined settlements with multiple opioid distributors (AmerisourceBergen Corporation, Cardinal Health, Inc., and McKesson Corporation) and retailers (Teva, Allergan, CVS, Walgreens, and Walmart).

The Council approved a memorandum of understanding in April 2022 (“One Washington MOU”), that delineates the amount the City of Vancouver would receive if any statewide settlement was reached (1.7306605325% of amounts allocated to local governments) and limits the categories for which opioid funds may be expended. Last month, the City entered into an interlocal agreement with Camas and Washougal to fulfill its obligations under this MOU so that any expenditure of opioid funds is as transparent as possible to the public.

On January 22, 2024, the State of Washington reached a settlement with the Johnson & Johnson/Janssen retailers for a total of $123,340,000, fifty percent of which will be allocated to Washington’s local governments. (See JNJ WA Settlement, §§ V.C & VI.A). The settlement is contingent on every one of the 37 litigating local governments (of which Vancouver is one) joining the settlement by May 11, 2024. Joining the settlement, assuming all other litigating Washington local governments do as well, would result in an estimated net allocation to local governments in the amount of $55,071,614.88. The estimate is premised on the total local government share ($61,670,000) less the current estimate of the total LG contingency fee requirement ($6,598,385.12) under Section IX.B. of the settlement agreement and the One Washington MOU. Given Vancouver’s allocation percentage of 1.7306605325% per the One Washington MOU, it is estimated that Vancouver’s allocation would be $953,102.70. Ninety-five percent of this amount would be paid in a one-time payment this upcoming June The remainder would be paid once every non-litigating local government joined the settlement, or January 22, 2026, whichever comes first.

By approving this agreement, the City will receive funds that may be used to address the community impacts of the opioid epidemic in Vancouver, which range from substance addition to mental health to homelessness.