Purdue and Landau deny the claims. In court filings, Landau said he had no role in overseeing sales or marketing for much of his career at the company. FILE – This June 17, 2019, file photo shows 5-mg pills of Oxycodone. The judge overseeing the bankruptcy case of OxyContin maker Purdue Pharma will consider Wednesday, Dec. 4, 2019 whether the company’s CEO should get a bonus equal to half his $2.6 million salary. (AP Photo/Keith Srakocic, File) Drain said officials with the company and other interested parties should continue to discuss whether it’s appropriate for Landau, who has run the company since 2017, to receive a performance bonus on top of his $2.6 million base salary. Drain said on the bench that he wasn’t especially moved by the contention from a group of 24 states that Landau should have his pay docked because of a possibility that he could be held liable in the future. Judge Robert Drain said he would sign an order for all the employees except Landau to get bonuses next year. He said it would contain a provision that it could be withheld from anyone found liable in lawsuits over the toll of the opioid crisis linked to more than 400,000 deaths in the U.S. since 2000. Purdue, based in Stamford, Connecticut, is in bankruptcy court as part of an effort to settle more than 2,700 lawsuits it’s facing over the toll of opioids. “Dr. Landau is a star, and he is a star that Purdue should have working for it in this challenging time,” she said. But he said he was concerned when it was revealed at the hearing that the CEO’s base salary was doubled in 2018 shortly after the company hired a law firm to consult on filing for bankruptcy – and that the same year, he received $6 million of the $12 million in retention payments that he had been scheduled to get from 2020 through 2026. FILE – This June 17, 2019, file photo shows 5-mg pills of Oxycodone. The judge overseeing the bankruptcy case of OxyContin maker Purdue Pharma will consider Wednesday, Dec. 4, 2019 whether the company’s CEO should get a bonus equal to half his $2.6 million salary. (AP Photo/Keith Srakocic, File) There were objections at the hearing only to payments to CEO Craig Landau and a group of nine other upper-level “insider” employees. State governments and a watchdog committee didn’t dispute the company’s contention that bonuses would be needed to keep employees working and the company running – especially after the company agreed to trim many of the bonuses. WHITE PLAINS, N.Y. (AP) – More time is needed to sort out whether the CEO of OxyContin maker Purdue Pharma should receive a $1.3 million bonus next year, but the company should be allowed to pay about $35 million in bonuses to 682 other employees, the judge overseeing the company’s bankruptcy case said Wednesday. In their lawsuits, Colorado and Massachusetts allege that Landau blamed the dangers of opioids on patients rather than the drugs and that he knowingly put patients at risk by having his sales team encourage more prescribing of the drug without disclosing the addiction risks. In the hearing, Landau’s lawyer, Linda Imes, said Landau, a medical doctor who joined Purdue in 1999 and became CEO in 2017 after a stint running its Canadian sister company, was behind a decision last year to stop marketing opioids to doctors. “Purdue should not award bonus payments to Landau before resolving the allegations that Landau committed deadly, illegal misconduct,” those states and others said in a filing this week. Purdue lawyer Marshall Huenber said those changes were not a tricky move to pay the CEO more with the possibility of bankruptcy looming but rather part of bigger changes to his compensation that includes a reduced severance package if he leaves the Stamford, Connecticut-based drugmaker. In Purdue’s case, the company says two dozen employees have resigned since it filed for bankruptcy in September and that replacements are hard to find. “Purdue continues to be a difficult place to work, and retaining and motivating Employees continues to be a challenge,” chief financial officer Jon Lowne said in a court filing this week. “In recent weeks, Employees have received an unprecedented barrage of calls from recruiters.” They say he pushed opioids for elderly patients and those who had never taken them before without disclosing their risks, falsely claimed that a version of OxyContin that was reformulated to make it harder for people to break down and misuse was safe, and pushed doctors to prescribe opioids for a longer period of time. Whether troubled companies should be allowed to pay bonuses to executives and other critical employees is a common topic debated during bankruptcy proceedings. In 2009, a judge ruled that Lehman Brothers, the investment bank, could pay 230 traders bonuses totaling $50 million to keep working through that company’s bankruptcy. This year, a judge approved paying rank-and-file workers for Pacific Gas & Electric Corp. $235 million in bonuses but nixed millions in extra pay for top executives.
Register to continue
Share this:FacebookTwitter TOP PHOTO: Saturday’s surprise birthday parade for cancer fighter Dalton Brown brought out smiles all around. The now 15-year- old Dalton Brown was completely caught off guard thanks to his parents, David and Amanda, ability to stay quiet.More than 70 cars, trucks and vans paraded past Dalton Brown’s home on Saturday afternoon.LAFOLLETTE, TN (WLAF) – Cancer fighter Dalton Brown’s 15th birthday came and went without much fanfare on Friday. That quiet celebration only helped the organizers of his birthday parade create an even bigger surprise come Saturday; a birthday parade right up his street in front of his house. Brown has been battling leukemia since his diagnosis last month and the outpouring of community support continues growing daily. Saturday’s parade provided plenty of proof.Dalton’s mother, Amanda Brown, said, “Dalton was completely shocked. He realized when the cop car came up the hill and saw a trail of cars following it with balloons and other things on vehicles what was going on. He grinned the entire time.”He told us, “You know what is weird? I think this is the best birthday I’ve ever had, and this is the year I was diagnosed with leukemia.”“His dad David and I are humbled by the community support and love that continues to be shown to our family specifically Dalton. Even more special was that fellow leukemia fighter, Baby Jack Price, was cheering Dalton on in the parade line,” said Amanda Brown.Happy Birthday, Dalton. …and many more…(WLAF NEWS PUBLISHED – 06/01/2020-6AM-PHOTOS COURTESY OF SHARYN VINCENT)