States opposed to a proposed $3 million bonus for the CEO of bankrupt Purdue Pharma L.P. should “move on” and support a proposal to donate the funds to a nonprofit that helps opioid victims, unsecured creditors say, Bloomberg Law reported. The unsecured creditors' committee said in a filing yesterday that it’s “not pleased” that CEO Craig Landau remains in his position, nor does it support paying him the proposed bonus, as the opioid-maker wants. But the New York bankruptcy court has, in previous years, approved similar proposals by Purdue , the committee noted. And the current proposal allows parties to try to claw back payments made to Landau if it’s found that he knowingly participated in any criminal misconduct in connection to Purdue or other activities, it said. “While not a perfect solution, this provision balances the debtors’ desire to compensate their employees with concerns regarding such employees’ potential responsibility for the debtors’ role in the opioid crisis,” the committee said. No party has shown that Landau engaged in conduct that warrants disgorgement of the money, the committee said. Instead, it suggested the states join its request for Landau or Purdue to donate some or all of the bonus to a nonprofit that fights the opioid crisis.
