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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
My doctor prescribed Vicodin, Norco Fentyol and other drugs for years. I have lots of proof
Add me to the lawsuit. I was prescribed Neurotin and fentenol, morfine, and other opioid
Add me please
This drugs are so addictive but who knew?? I just took 1 and then 2 and so on. At one point in my life I was taking 16 a day because my body had high tolerance. Ruined my life I now have a criminal record. I have paid thousand in fines. Who is going to pay me back? Who is going to help me clear my record? IM SO PISSED!!
BUT ITS OK FOR THIS BIG COMPANIES TO MAKE BILLION ON US!! SHAMEFUL!!!
Include me please
Add Me.