Prescott
AZ

Council Memo
2871

Motion to Waive Potential Conflict of Interest in Opioid Litigation

Information

Department:City AttorneySponsors:
Category:Approval

Attachments

  1. Printout
  2. Opioid Legal Counsel Conflict Waiver

Document Comments

Recommended Action: MOVE to waive potential conflict of interest of law firm Andrews & Thornton in Opioid Litigation and authorize the Mayor to sign the attached Waiver of Conflict Letter. 

Body

Item Summary

 

This item is to waive a potential conflict of interest of the law firm Andrews & Thornton in the City’s opioid litigation.

 

 

Background

 

The law firm Andrews & Thornton is co-counsel in the City’s lawsuit against the manufacturers and distributors of prescription opioids for their role in causing and perpetuating the nationwide opioid crisis. Anne Andrews of the firm Andrews & Thornton has expertise in serving on and advising creditor committees in high profile bankruptcies.  Given her experience, Anne Andrews was asked to serve (and does serve) on the Unsecured Creditors Committee in both the Insys and Purdue bankruptcies. 

 

Purdue Pharma/Sackler Estate may be inadequate to satisfy its liabilities.  Andrews & Thornton, as counsel to individual opioid victims as well as municipalities, has thus become aware of the potential conflict in the opioid bankruptcies given that both the individual victims and the public entities will each be vying for compensation from the funds available from the debtors in the bankruptcy proceeding.  Andrews & Thornton, and Attorney Andrews advise that having consulted with their own separate legal counsel, that no actual conflict exists, as Attorney Andrews, in her position in the bankruptcies, is obligated to maximize recovery for all claimants, not just one category of cases. 

 

Financial Impact

 

There is no direct financial impact to the City in waiving the potential conflict.

 

 

Meeting History

Feb 25, 2020 3:00 PM  City Council Voting Meeting
draft Draft
RESULT:APPROVED [UNANIMOUS]
MOVER:Alexa Scholl, Councilwoman
SECONDER:Steve Sischka, Councilman
AYES:Greg Mengarelli, Billie Orr, Steve Blair, Phil Goode, Cathey Rusing, Alexa Scholl, Steve Sischka