DATE: April 7, 2026
TO: Mayor and City Council
FROM: City Attorney
SUBJECT
Title
Adopt a Resolution Approving Participation in the National Opioid Remnant Defendants Settlement and Authorizing the City Manager to Execute and Submit all Necessary Settlement Participation Documents on Behalf of the City of Hayward.
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RECOMMENDATION
Recommendation
That the Council adopts a resolution (Attachment II) approving participation in the Remnant Defendants Settlement 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) (the Six Remnant Defendants), and authorizing the City Manager to execute and submit all necessary settlement participation documents on behalf of the City of Hayward.
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SUMMARY
In March 2026, the settlement administrator for the national opioid litigation advised the City of Hayward that it is eligible to participate in a new national opioid settlement that has been reached with six regional distributors/dispenser defendants (Remnant Defendants Settlement): 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) (Six Remnant Defendants). There is one settlement agreement covering the combined settlement with the Six Remnant Defendants.
If effectuated, the proposed Remnant Defendants Settlement will result in the Six Remnant Defendants paying a combined $97,625,000 nationally in cash for purposes of abating the opioid epidemic. An Eligible Entity’s participation in the Settlement will result in a one-time settlement payment to each Eligible Entity. The Settlement funds must be used for approved uses identified in the Settlement Agreement.
The Remnant Defendants Settlement does not include State Attorneys General or any amount allocated to a State. Rather, this Settlement will be distributed only and directly to any Eligible Entity that participates by signing and returning the settlement participation documents to the settlement administrator by May 4, 2026. If Hayward participates in the settlements described above, it would be entitled to receive a portion of the settlement proceeds as set forth in the Settlement Agreement.
ATTACHMENTS
Attachment I Staff Report
Attachment II Resolution