Explanation
BACKGROUND: The City has been exploring the various legal options that may be available to help deal with the amount of money it spends on generic pharmaceutical drugs (hereinafter “generic drugs”), as a part of its health insurance coverage for employees. Specifically, from February of 2020 until November of 2023, the City itself spent almost $106 million on generic drugs, including specialty generic drugs.
Several government entities have brought suit against certain manufacturers of generic drugs for price fixing. The City Attorney’s office is in need of special legal counsel to assist in pursuing legal options, including but not limited to, possible litigation against these manufacturers. After consideration, the City Attorney has selected the law firm of Grossman & Kelly LLP to serve as special legal counsel for this matter.
FISCAL IMPACT: While there is no cost to the City as a result of this contract, City Council approval is being sought due to the legally binding commitment being made therein to pay attorney fees and reimburse for reasonable litigation expenses solely on a contingency basis from any recovery related to the portion of any matter resolved in favor of the City.
Title
To authorize the City Attorney to enter into contract with Grossman & Kelly LLP for special legal counsel services regarding price fixing issues related to generic drugs; and to declare an emergency. ($0.00)
Body
WHEREAS, the City Attorney has a need for special legal services with regard to nuisance matters pertaining to health care plan costs concerning generic drugs affecting the City; and
WHEREAS, after consideration, the City Attorney has selected the law firm of Grossman & Kelly LLP to serve as special legal counsel for these matters; and
WHEREAS, while there is no upfront cost to the City, City Council approval is being sought due to the legally binding commitment being made therein to pay attorney fees and reimburse for reasonable litigation expenses solely on a contingency basis from any recovery related to the portion of any matter resolved in favor of the City; and
WHEREAS, an emergency exists in the daily operation of the City Attorney's Office due to a court hearing scheduled for July 23, 2025 that it is immediately necessary to authorize the City Attorney to enter into a contract with Grossman & Kelly LLP in order to allow the assistance of special counsel to commence immediately during this ongoing nuisance action, for the immediate preservation of the public health, peace, property, safety and welfare; and NOW, THEREFORE,
BE IT ORDAINED BY THE COUNCIL OF THE CITY OF COLUMBUS:
Section 1. That the City Attorney is hereby authorized to enter into contract with Grossman & Kelly LLP for special legal counsel services regarding pricing of generic drugs affecting the City.
Section 2. That said contract shall provide that there shall be no obligation by the City to pay any fee to special legal counsel or reimburse them for reasonable litigation expenses if nothing is recovered from any adversary and that the City agrees to pay attorney fees and reimburse for reasonable litigation expenses solely on a contingency basis from any recovery related to the portion of any matter resolved in favor of the City.
Section 3. That for the reasons stated in the preamble hereto which are hereby made a part hereof, this ordinance is hereby declared to be an emergency measure and shall take effect and be in force from and immediately after its passage and signature by the Mayor, or within 10 days thereafter if the Mayor neither signs nor vetoes the same.