RESOLUTION NO. RS2015-1512

A resolution authorizing the Mayor to employ the law firm of Lieff Cabraser Heimann & Bernstein, LLP, as special counsel, on a contingent fee basis, to investigate and pursue claims against pharmaceutical manufacturing companies that have illegally suppressed lower priced generic competition or engaged in other illegal conduct that has caused economic harm to the Metropolitan Government.

WHEREAS, Section 8.607 of the Charter of the Metropolitan Government of Nashville and Davidson County states: “No department, board, commission or other agency of the metropolitan government may employ special counsel. Whenever the interests of the metropolitan government require special counsel, the council, by resolution, may authorize the mayor to employ such counsel, who shall be paid such compensation for his service as the mayor, the director of law and the director of finance shall determine to be reasonable compensation for the services rendered, and as the council shall by resolution approve”; and,

WHEREAS, the Department of Law does not employ attorneys experienced in prosecuting antitrust claims or other related claims against pharmaceutical manufacturing companies that have illegally suppressed lower priced generic drugs or otherwise engaged in conduct that has caused economic harm to the Metropolitan Government; and,

WHEREAS, the interests of the Metropolitan Government require special counsel to investigate, and if appropriate, pursue litigation against pharmaceutical manufacturing companies who have illegally suppressed lower priced generic drugs or otherwise engaged in conduct that has caused economic harm to the Metropolitan Government; and,

WHEREAS, a contingent fee agreement is the most economical means of financing the litigation that might result from the investigation of the pharmaceutical manufacturing companies. Further, any litigation that does result against a pharmaceutical manufacturing company may become a class action, and a contingency fee agreement is more easily modified by the class action court so that all members of the class bear their fair share of the expense of the litigation; and,

WHEREAS, Lieff Cabraser Heimann & Bernstein, LLP is eminently qualified to represent the interest of the Metropolitan Government’s health care plans against pharmaceutical manufacturing companies.

NOW, THEREFORE, BE IT RESOLVED BY THE COUNCIL OF THE METROPOLITAN GOVERNMENT OF NASHVILLE AND DAVIDSON COUNTY:

Section 1: The Mayor is authorized to employ Lieff Cabraser Heimann & Bernstein, LLP as special counsel, on a contingent fee basis, in accordance with the terms and conditions contained in the contract attached as Exhibit A to this resolution.

Section 2: Any net recovery to the Metropolitan Government from the proposed litigation shall be deposited into the Metropolitan Benefit Board’s Medical Trust Fund.

Section 3: This resolution shall take effect from and after its adoption, the welfare of the Metropolitan Government of Nashville and Davidson County requiring it.

Sponsored by: Bill Pridemore

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LEGISLATIVE HISTORY
Referred to:	Budget & Finance Committee
Introduced:	June 2, 2015
Adopted:	June 2, 2015
Approved:	June 6, 2015
By: