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State AGs fight bonus pay for CEO of OxyContin-maker Purdue

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The chief executive officer of OxyContin-maker Purdue Pharma LP should not collect a potential US$1.3 million bonus when he has been accused of contributing to the opioid epidemic, a group of state attorneys general said in a court filing on Monday.

FILE PHOTO: Bottles of prescription painkiller OxyContin made by Purdue Pharma LP sit on a shelf at a local pharmacy in Provo, Utah, U.S. April 25, 2017. REUTERS/George Frey/File Photo


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REUTERS: The chief executive officer of OxyContin-maker Purdue Pharma LP should not collect a potential US$1.3 million bonus when he has been accused of contributing to the opioid epidemic, a group of state attorneys general said in a court filing on Monday.

The attorneys general from 24 states said Craig Landau should not collect a bonus that would lift his pay to US$3.9 million because of his alleged role in downplaying the risks of Purdue's drugs.

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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 declined to comment.

Purdue is on track to pay US$24 million in bonuses to eligible employees based on its 2019 performance so far, the company said in a Monday filing. However, Purdue said that to get support for its bonus plan it would limit Landau's potential bonus to 50per cent, or US$1.3 million of his US$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.

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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.

A few weeks later, the Sacklers made him CEO, according to the filing.Read More – Source

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