In the February 2023 webinar Opioid Settlement Updates, KLC updated members on the next steps that cities can expect regarding the national settlement and discussed the pending settlement with TEVA, Allergan, Walgreens, Walmart, and CVS. You can access a recording of the webinar here.

As with the national settlement, cities need to take affirmative steps to participate in the settlements. Be aware of key dates that impact whether your city participates. In January of this year, most cities received an email from RUBRIS with directions on the process to opt-in to the settlement. RUBRIS is the administrator of the TEVA, Allergan, Walgreens, Walmart, and CVS settlement. To participate, cities must submit participation forms through the electronic portal by April 18, 2023, as explained here. If you have not received the email, please check your spam/junk/blocked folders.

Kentucky Attorney General Daniel Cameron announced the settlements in December 2022. If the settlement is finalized under the terms of the current agreement, Kentucky will receive a total of $362 million as follows:

• $102 million from Walgreens over 15 years;

• $94 million from CVS over 10 years;

• $53 million from Walmart, with the majority paid in 2023;

• $42 million from Allergan over seven years; and

• $17 million from TEVA over 13 years.

TEVA, Allergan, Walgreens, and CVS have until May 18, 2023, to decide whether to proceed with the settlement. Once the parties finalize the settlement agreement, funds are allocated by the same method as the national opioid settlement funds. Pursuant to KRS 15.293, 50% of the funds are deposited into the state opioid settlement account administered by the Kentucky Opioid Abatement Advisory Commission and 50% are distributed to local governments, according to the formula adopted in the national opioid settlement agreement.

Only cities calculated to receive at least $30,000 for each individual settlement will receive a direct allocation of funds. For the remaining cities, the allocation is rolled into the county allocation. Cities may still apply for individual project funding through the Kentucky Opioid Abatement Advisor Commission as explained here.

For more information on this or any other municipal law matters, contact KLC Director of Municipal Law Morgain M. Patterson or KLC Municipal Law Attorney Megan Griffith at 800.876.4552.