Purdue Pharma Can Use EY as Auditor Despite Objection from U.S.

Dec. 19, 2019, 9:05 PM

U.S. Bankruptcy Court Judge Robert D. Drain cleared the way for Purdue Pharmato hire Ernst & Young as its financial statement auditor at a hearing Thursday, overruling an objection from the U.S. Trustee.

  • The U.S. Trustee objected to the hire because EY also provides services to other businesses owned by the Sackler family, which owns Purdue, arguing that that relationship could skew the auditor’s incentives
    • EY is Purdue’s longtime auditor
  • “You do have a duty to explain to me whether there is an adverse interest here rather than mere speculation,” Drain said to a U.S. Trustee representative in court,...

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