Intertribal Allocation

As part of the Purdue restructuring plan initially approved in September 2021, the Purdue bankruptcy court approved an inter-tribal allocation matrix, which focuses on allocating funds according to the relative harm suffered. The allocation was developed by experts and lawyers for the Tribes, and was also reviewed and approved by former federal Judge Layn Phillips, who served as a court-appointed mediator in connection with the bankruptcy proceeding. Click here for the Purdue Allocation. That same allocation was subsequently adopted as part of the Mallinckrodt restructuring plan, which was approved by Mallinckrodt bankruptcy court and has gone into effect. Therefore, tribal abatement funds from the Mallinckrodt and Purdue bankruptcies—if the Purdue restructuring plan goes into effect—will be governed by the Purdue Allocation.

Ohio federal district court Judge Dan A. Polster, who oversees the National Prescription Opiate Multi-District Litigation (MDL), appointed former federal Judge Layn Phillips and Special Master David Cohen to set procedures and then to jointly develop a final settlement allocation that will govern the distribution of abatement funds from the J&J, Distributor, Teva and Allergan, Walmart, CVS, Walgreens, and McKinsey tribal settlements. After soliciting comments from all Tribes and from Alaska and California Tribal health organizations throughout the fall of 2022, Judge Phillips and Master Cohen issued their initial Tribal Allocation Order on March 22, 2023.

Tribal Allocation Order No. 1 specified that for 2023 (the first year of payments), 87.5% of the tribal abatement funds would be distributed according to the Purdue Allocation described above. Note, however, that the Purdue Allocation is adjusted for purposes of the CVS, Walgreens, Walmart, and Distributors settlements to reflect the fact that the Cherokee Nation settled separately with those Defendants and therefore does not receive an allocation of those settlements.

Tribal Allocation Order No. 1 left open the possibility that Judge Phillips and Special Master Cohen could adopt a different allocation methodology for the remaining 12.5% of funds received in 2023 and for 7.5% of funds available in future years. After further consideration, however, Judge Phillips and Special Master Cohen announced in Tribal Allocation Order No. 2 that 100% of tribal abatement funds will be allocated according to the Purdue Allocation, for the reasons explained in that Order. Tribal Allocation Order No. 2 was entered on May 16, 2023 and can be accessed here.

The Allocation Orders allow the Tribal Settlement Directors to begin distributing the 2023 funds at any time, and the Directors intend to begin distributing payments in the summer of 2023. To receive payment, all participating Tribes must provide the payment information requested by the Directors. Please click here for a copy of the payment Notice issued by the Directors, which contains instructions for submitting this information.

	Intertribal Allocation Order No. 2 – 5/16/23
	Intertribal Allocation Order No. 1 - 3/22/23