TITLE
Title
RESOLUTION AUTHORIZING EXECUTION OF OPIOID SETTLEMENTS WITH SIX REMNANT DEFENDANTS
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SPONSOR
Sponsor
County Attorney Carolyn Thompson / County Manager Victor Isler
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BACKGROUND
Background
A new national settlement has been finalized with the following six additional opioid distributor/dispenser defendants under the Remnant Defendants’ Settlement Agreement dated February 23, 2026: Associated Pharmacies, Inc. (and American Associated Pharmacies); JM Smith Co.; Morris and Dickson; Louisiana Wholesale Drug Company, Inc.; North Carolina Wholesale Drug Company, Inc.; and UNFI/SuperValu. The total value of this national settlement is $97,625,000.
The National Consortium strongly recommends participation in this settlement. This settlement follows the national framework used in prior resolutions and provides additional abatement funding without the expense and delay of continued litigation.
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RESOLUTION
Resolution
RESOLUTION BY THE GUILFORD COUNTY BOARD OF COMMISSIONERS AUTHORIZING EXECUTION OF OPIOID SETTLEMENTS WITH SIX REMNANT DEFENDANTS
WHEREAS, more than 41,500 North Carolinians lost their lives to a drug overdose from 2000-2023.
WHEREAS, the Centers for Disease Control and Prevention has estimated the total economic burden of prescription opioid misuse alone in the United States to be $78.5 billion a year, including the costs of healthcare, lost productivity, addiction treatment, and criminal justice involvement;
WHEREAS, in 2024, there were 181 overdose deaths among Guilford County residents. This includes deaths from any medication or illicit drug. Guilford County resident death rate increased 7% from 2020 to 2024, compared to a 16% decrease among all North Carolina Residents over the same time period.
WHEREAS, certain counties and municipalities in North Carolina joined with thousands of local governments across the country to file lawsuits against opioid companies, manufacturers, pharmaceutical distributors, and chain drug stores to hold those companies accountable for their misconduct;
WHEREAS, a new national opioid settlement (“Six Remnant Defendants Settlement”) has been reached with six regional distributors/dispenser defendants: Associated Pharmacies, Inc. (and American Associated Pharmacies); 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. (including its subsidiaries SuperValu and Advantage Logistics) (each individually, a “Remnant Defendant,” and, collectively, the “Six Remnant Defendants”);
WHEREAS , the Six Remnant Defendants are expected to pay a total $720 million to settle opioid claims across the nation. The settlement would be subject in North Carolina to the equitable distribution of the proceeds as set forth in the settlement agreements;
WHEREAS Guilford County is expected to receive an amount pursuant to the allocation set forth in Exhibit E of the Settlement Agreement among Participating Subdivisions and Remnant Defendants;
WHEREAS by joining the Six Remnant Defendants Settlement, local governments maximize North Carolina’s share of opioid settlement funds to ensure the needed resources reach communities, as quickly, effectively, and directly as possible;
WHEREAS it is advantageous to all North Carolinians for local governments, including Guilford County, to sign onto the Six Remnant Defendants Settlement, in order to demonstrate solidarity in response to the opioid overdose crisis, and to maximize the share of opioid settlement funds received both in Guilford County to help abate the harm;
WHEREAS, the Six Remnant Defendants settlement is not governed by the North Carolina Memorandum of Agreement between the State of North Carolina and Local Governments on Proceeds Relating to the Settlement of Opioid Litigation (“NC MOA”); consequently, any funds received from the Six Remnant Defendants settlement shall be placed in a separate fund from settlements governed by the NC MOA;
WHEREAS, although the Six Remnant Defendants settlement is not governed by the NC MOA, any funds received from the Six Remnant Defendants settlement shall be used for opioid abatement strategies as outlined in Exhibit D of the Settlement Agreement among Participating Subdivisions and Remnant Defendants;
WHEREAS these and past opioid settlements direct substantial resources over multiple years to local governments on the front lines of the opioid overdose epidemic while ensuring that these resources are used in an effective way to address the crisis; and
NOW, THEREFORE, BE IT RESOLVED that the Guilford County Board of Commissioners hereby authorizes the County Manager to execute the necessary documents to enter into opioid settlement agreements, as set forth herein with the Six Remnant Defendants, and to provide such documents to Rubris, the Implementation Administrator, subject to a pre-audit certificate thereon by the County Chief Financial Officer, if applicable, and approval as to form and legality by the County Attorney.
ADOPTED this 16th day of April, 2026.
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REQUESTED ACTION
Requested Action
Adopt resolution authorizing County Manager or his designee to execute all documents necessary to enter into opioid settlement agreements with Kroger and to execute the SAFF-2; and take any other necessary actions to submit documents and receive funding if awarded.
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