On June 5, 2019, authorities announced a $225 million global resolution of criminal and civil investigations into opioid manufacturer Insys Therapeutics, Inc. (“Insys”) in connection with the company’s marketing of the fentanyl spray Subsys.  Insys entered into a five-year deferred prosecution agreement, and operating subsidiary Insys Pharma, Inc. agreed to plead guilty to five counts of mail fraud.

According to charging documents, Insys used “speaker programs” to funnel bribes and kickbacks to practitioners in exchange for increased Subsys prescriptions and dosages, resulting in participating practitioners prescribing the highly addictive spray when medically unnecessary in some cases.  Five former Insys executives were convicted at trial of racketeering conspiracy charges in May, bringing the total number of company executives convicted of federal crimes in connection with Subsys marketing efforts to eight.  Insys will pay $30 million in criminal fines and forfeiture, in addition to $195 million to resolve several qui tam actions brought under the False Claims Act.  According to DOJ’s press release, Insys provided “extensive cooperation” in the government’s prosecution of culpable individuals, and as a result the Office of the Inspector General of the U.S. Department of Health and Human Services elected not to pursue exclusion of Insys from federal programs.

 

United States v. Insys Therapeutics, Inc., No. 19-cr-10191 (D. Mass.)

DOJ Press Release