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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
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I was prescribed oxycotin in mid 90’s. For 31 years I have been fighting addiction ever since. When I was prescribed I was told they were non addictive. They completely ruined my life. Im almost 50 now and have lost everything. When I got out of the mitary I had dreams. Had a great job bought a house…had it all. They stole my life for profits.
Please add me and my wife
20 years addiction
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Me since 2008 when I had back surgery took me a while to get cleaned
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affected
I never did any kind of drugs until the doctor put me on percs after an accident for like almost a year they were filling me full of pills then just stopping giving them to me I’m now going to a suboxone clinic but they coast me my life I lost everything my marriage my relationships with my family and friends everything
Please ADD ME BC OIPIOD PAIN MEDICINE DESTROYED MY LIFE!!! For 11 years I had One kid . at 18 years old her big head ripped me from the Rutter-to-the-tutter, so he stitch me up…. My doctors whom, I came to trust (I mean for 9 months he check & seen my Who-Ha “my important parts”)…. I REALLY TRUST HIM… My doctors said these exact WORDS open quote “ congratulations Ms.Williams you did great, she’s perfect. Here take these for pain and I’ll see you a week from now for you check up”… end quoit!!!! NEVER EVER SAID THIS MEDICATION IS VERY ADDICTIVE!!!!! I was young I grew up on poverty I SEEN WHAT DRUGS DID TO MY SURROUNDINGS…. I WAS ALSO TAUGHT AT SCHOOL ABOUT DRUG, the PROGRAM WAS CALLED (D.A.R.E) program they NAMED EVERY DRUG OUT THERE. … WHAT IT DID TO OUR BODIES & BRAIN IF WE TOOK THEM!!!! THEY NEVER SAID ANYTHING ABOUT THE PILLS THE DOCTOR GIVE CaN also have the same effect!!! I would have NEVER taken that medicine had I known that. I FEEL HE TOOK MY CHOICE AWAY WHEN HE DIDNT EXPLAIN. And just like that my life was controlled for 11 plus years I can’t get back… Because of this ONE PILL….
Im affectd currently recovering from Opiates. Was put on Fentyl 75 mg patch for over 18 months and doctor stopped when DEA came to his office to review his practice. Suffered horrible withdrawals and I’m on Suboxone now and still have bad cravings and severe depression from being put on strong pain meds without the doctor knowing what my real medical pain issue was from.