NEW YORK – New York Attorney General Letitia James, along with a coalition of 24 additional attorneys general from around the nation, today filed a “joinder” in U.S. Bankruptcy Court for the Southern District of New York to formally oppose Purdue Pharma’s decision to pay out $38 million in bonuses to company executives, despite the fact that the company has filed for bankruptcy.
“As Purdue Pharma argues in court that they cannot afford to pay creditors what they owe, the company wants to hand out $38 million in bonuses to their top executives,” said Attorney General James. “The company needs to be held to account, not be allowed to recklessly spend what they claim are limited funds. Our broad coalition of attorneys general is taking action today to stop this waste from proceeding.”
The attorneys general filed a joinder to the United States Trustee’s objection to Purdue’s authorization request for their multi-million dollar incentive, bonus, and severance plans. Purdue submitted this request just two weeks after declaring bankruptcy in the face of multi-billion dollar liabilities for their role in engineering the opioid epidemic.
Joining Attorney General James in filing today’s joinder to the U.S. Trustee’s opposition filing are the attorneys general of California, Colorado, Connecticut, Delaware, Hawaii, Idaho, Illinois, Iowa, Maine, Maryland, Massachusetts, Minnesota, Nevada, New Hampshire, New Jersey, North Carolina, Oregon, Rhode Island, Vermont, Virginia, Washington, Wisconsin, and the District of Columbia.