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The founder of Insys Therapeutics has agreed to pay $5 million to settle allegations he used the company to coordinate kickbacks to doctors who agreed to prescribe opioids, further fueling the drug use epidemic.
77-year-old John N. Kapoor, along with four other Insys executives, was convicted in 2019 of orchestrating the bribery scheme. Apparently he used Insys Therapeutics as a disguise to bribe health care professionals into using an opioid-based nasal spray, according to a civil lawsuit lodged by the New Jersey Attorney General’s Office.
In addition, Kapoor was accused of orchestrating misrepresentations to insurance companies about patients’ diagnoses and treatment, in order to ensure payment for the drug.
Sales of Subsys, “a sublingual fentanyl spray approximately fifty times stronger than heroin and one hundred times more potent than morphine,” boomed under the bribery scheme, alleged the lawsuit.
Under the terms of the opioid settlement, Kapoor will need to submit a $1 million down payment in cash. In addition, he will be permanently barred from owning or managing any business in New Jersey, states the settlement documents, and his penalties shall be non-dischargeable in bankruptcy.
The proceeds will go to attorney fees, as well as to drug treatment programs.
“This settlement rightly makes him responsible for providing financial resources needed to combat the long-lasting and destructive ripple effects of his unlawful actions,” Sharon M. Joyce, director of the Office of the New Jersey Coordinator for Addiction Responses and Enforcement Strategies stated of the opioid settlement.
In addition to the civil lawsuit, Kapoor and other top Insys Therapeutic executives faced criminal prosecution, according to Law360. They’ll reportedly be going to prison in February 2021.
Insys has since filed for Chapter 11 bankruptcy.
“We are committed to holding accountable anyone whose bad conduct has helped fuel the opioid epidemic, whether they pushed drugs from a board room, an exam room, or a street corner,” said New Jersey Attorney General Gurbir S. Grewal in a statement.
Have you or a loved one been affected by the opioid epidemic? We want to hear from you! Tell us your story in the comment section below.
New Jersey is represented by New Jersey Deputy Attorney General Lara J. Fogel and Assistant Attorneys General Eric Boden, Brian DeVito and Dana Vasers.
The Insys Therapeutics Opioid Bribery Lawsuit is Gurbir S. Grewal et al. v. Insys Therapeutics Inc. et al., Case No. MID-C-000001-18, in the Superior Court of New Jersey, Middlesex County.
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27 thoughts onInsys Therapeutics to Pay $5M in Opioid Lawsuit Settlement
There should be mandatory jail time. Just like every other drug dealer gets! 5 million is spit in the bucket for what these criminals made. What a joke!
Very much affect
Wow!!! It’s about time!! I have been affected by this as well as my sister and husband!
My only son died at the age of 3113 months after the birth of his son (my only grandchild) not till after the fact found out doctors were prescribing him all kinds of anti-depressants anxiety medication something to go to sleep something to wake up something called Zola she developed or started having seizures from a result of a seizure he broke both collarbone had surgery replacement they sent him home with a morphine pump where he became very addicted to opiates after one seizure an emergency room doctor prescribed him tramadol which later I found out induces seizures he was injected pretty bad to opiates he died of that now now his son grows up without his father whom is the spitting image of his father he’s demeanor his voice his actions my son lives in my grandson is a damn shame that that happened because right after my mother died then my son died in six weeks after that my father died upon finding out doctors were prescribing him all kinds of pills to go to sleep to wake up Absolutely crazy but he was prescribed mainly and I depressants and a lot of opiates I myself got in a car accident I had my shoulder replaced and I simply refused to take pain medication in fear of addiction
Its truly awful some ppl need their pain meds after these awful accidents or after certain health diagnosis but if it gets to the point a person is addicted thats dangerous
My son died from opioid addition that branched to fentanyl.
Sorry for your loss
I am affected
Being prescribed opioids caused me to become addicted and led to nearly 20 years of heroin addiction. Im Currently in a methadone clinic. My brother died in 2010 from a mixture of dilaudid and heroin. He became addicted after several accidents where he needed pain meds.
My best friend took his own life after years of addiction to pain meds. He was in a terrible car accident a few years ago.
I am affected
affected