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...
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