City Council

b. NATIONAL OPIOID SETTLEMENT AGREEMENT WITH DEFENDANT\nKROGER CO.\nSummary:\nStates and cities across the United States have brought litigation against\nregional supermarket pharmacy Kroger Co. related to alleged misconduct to\nopioids painkillers. A proposed nationwide settlement agreement has been\nreached that would resolve the legal claims and require Kroger Co. to pay\napproximately $1.4 billion.\nThe City can opt into the settlement agreement, thereby releasing its claims\nagainst Kroger Co. The funds are restricted to certain opioid abatement or\nremediation uses. The City can either allow the funds to be used by the County\nof Los Angeles or elect to use the funds itself subject to twelve years of reporting\nrequirements to the state. Alternatively, the City can take no action, thereby\nopting out of the settlements, while maintaining its right to pursue litigation\nagainst Kroger Co.\nStrategic Plan Goal(s):\nGoal No. 1 Financial Stability: Ensure the City’s long-term financial stability\nand resilience.\nGoal No. 2 Community Safety: Maintain community safety by supporting\npublic safety services and increasing emergency preparedness.\nRecommendations:\n1. Opt into the settlement agreement with Kroger and allocate the City’s\nportion of the settlement funds to the County of Los Angeles and direct\nthe City Manager to execute any documents necessary to implement the\naction.\n2. Grant the City Manager authority to execute and enter into future\nagreements related to the nationwide opioid settlements.