|
 The attorneys general of 24 states said Craig Landau should not
collect a bonus that would lift his pay to $3.9 million because of
his alleged role in downplaying the risks of Purdue's drugs.
The filing also said Purdue increased Landau's potential pay in 2018
"in preparation for the filing of this case," and possibly to
circumvent the bankruptcy code's restrictions on such bonuses.
Purdue filed for bankruptcy protection in September, under pressure
from more than 2,500 lawsuits alleging it helped fuel the deadly
U.S. opioid epidemic
Purdue said in a statement that the long-standing bonus plan will
help motivate employees to maximize the value of the company and
noted that it had worked with creditors to reduce the cost of the
plan by $10 million.
Purdue is on track to pay $24 million in bonuses to eligible
employees based on its 2019 performance, the company said in a
Monday court filing. However, Purdue said that to get support for
its bonus plan it would limit Landau's potential bonus to 50%, or
$1.3 million of his $2.6 million base pay. Other employees would
still get their target bonus.
The attorneys general said documents that have not been made public
tie Landau to the alleged misconduct by the Sackler family owners of
Purdue.
The filing said documents from a Massachusetts lawsuit against
Purdue show Landau wrote a 2017 proposal entitled "Sackler Pharma
Enterprise" aimed at seizing on rivals' concerns about the opioid
epidemic to increase Purdue's business.
[to top of second column] |
A few weeks later, the Sacklers made him CEO, according to the
filing.
The attorneys general also alleged that Purdue in 2018 gave Landau
$6 million in retention payments that were not due until 2020 and
2022, and raised his annual salary in 2018 to $2.5 million, citing a
lawsuit by Colorado.
The official committee of unsecured creditors supported the bonus
plan for Landau.
Purdue filed for Chapter 11 bankruptcy in September to pause
thousands of lawsuits while it tries to build support for a proposed
settlement it estimates is worth $10 billion. Most lawsuits were
filed by state and local governments, which accuse it of hyping the
benefits of its drugs while masking the risks. Purdue has denied the
allegations.
The proposed settlement includes a contribution of at least $3
billion by the Sacklers.
(Reporting by Tom Hals in Wilmington, Delaware; Editing by Richard
Chang and Leslie Adler)
[© 2019 Thomson Reuters. All rights
reserved.] Copyright 2019 Reuters. All rights reserved. This material may not be published,
broadcast, rewritten or redistributed.
Thompson Reuters is solely responsible for this content.
 |
