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R-25-28RESOLUTION NO. R-25-28 A RESOLUTION ACCEPTING THE PURDUE PIIARMA BANKRUPTCY PLAN AND APPROVING OF THE CITY'S PARTICIPATION IN THE PROPOSED DIRECT SETTLEMENT OF OPIOID-RELATED CLAIMS AGAINST THE SACKLER FAMILY, AND AUTHORIZING AND DIRECTING THE EXECUTION OF ANY DOCUMENTS NECESSARY TO EFFECTUATE THE CITY'S PARTICIPATION IN THE SETTLEMENT WHEREAS, the opioid epidemic that has cost thousands of human lives across the country also impacts the City of Fairfax (the "City") by adversely impacting the delivery of emergency medical, law enforcement, criminal justice, mental health and substance abuse services, and other City services; and WHEREAS, the City has been required and will continue to be required to allocate substantial taxpayer dollars, resources, staff energy and time to address the damage the opioid epidemic has caused and continues to cause its citizens; and WHEREAS, a settlement proposal has been negotiated that will cause the Sackler family, the owners of the Purdue Pharma family of companies, to pay an aggregate of $6.5 billion dollars nationwide to resolve opioid-related claims against them and resolve Purdue Pharma's bankruptcy; and WHEREAS, the City has filed suit against Purdue Pharma and the Sackler family for their role in the distribution, manufacture, and sale of the pharmaceutical opioid products that have fueled the opioid epidemic that has harmed its citizens; and WHEREAS, the City's suit seeks recovery of the public funds previously expended and to be expended in the future to abate the consequences and harms of the opioid epidemic; and WHEREAS; the City submitted a proof of claim in the bankruptcy and is thus entitled to vote on whether the bankruptcy court should accept or reject the associated bankruptcy plan; WHEREAS, the City has previously approved and adopted the Virginia Opioid Abatement Fund and Settlement Allocation Memorandum of Understanding (the "Virginia MOU"), and affirms that this pending settlement with the Sackler family shall be considered a "Settlement" that is subject to the Virginia MOU, and shall be administered and allocated in the same manner as the opioid settlements entered into previously with the Distributors, Janssen, Teva, Allergan, Walmart, CVS, Walgreens, and Kroger; and WHEREAS, the City's outside opioid litigation counsel has reviewed the available information about the proposed settlement with the Sackler family and the Purdue Pharma bankruptcy plan and has recommended that the City accept the bankruptcy plan and participate in the settlement, in order to recover its share of the funds that the settlement would provide; and WHEREAS, the City Attorney has reviewed the available information about this matter and concurs with the recommendation of outside counsel. NOW THEREFORE BE IT RESOLVED that the City Council hereby, on behalf of the City, accepts the -Purdue Pharma bankruptcy plan and approves of the City's participation in the proposed settlement of opioid-related claims against the Sackler family, and directs the City Attorney and/or the City's outside counsel, and the Mayor and/or the City Manager as necessary, to execute the documents necessary to effectuate the City's participation in the settlement, including the required release of claims against the Sackler family, and accept the bankruptcy plan. Adopted this 9' day of September, 2025. Mayor ATTEST: City &7hA Vote: Mayor Read Aye Councilmember Amos Aye Councilmember Bates Aye Councilmember Hall Aye Councilmember Hardy -Chandler Aye Councilmember McQuillen Aye Councilmember Peterson Aye