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Purdue Pharma Faces DOJ Heat for $38 Million Employee Bonus Plan

Sept. 30, 2019, 8:27 PM

The Justice Department is opposing Purdue Pharma LP’s “very atypical” request to pay at least $38 million in employee bonus and severance payments while the company is in bankruptcy.

The embattled prescription opioid manufacturer has not adequately explained an employee wages and bonus program it seeks to implement at the outset of its Chapter 11 case, attorneys for the U.S. Trustee, the DOJ’s bankruptcy watchdog agency, said in a Sept. 27 filing at the U.S. Bankruptcy Court for the Southern District of New York.

Purdue is seeking to sustain normal business operations while grinding through a bankruptcy to deal with...

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