Insys Therapeutics' former chief financial officer has agreed to pay the $2 million to resolve a class action lawsuit. It alleges investors were unaware that the company was involved in a fraud scheme — paying kickbacks to doctors — that generated millions in sales for the company for its highly addictive fentanyl spray.
The settlement with Darryl Baker, who served as the now-bankrupt opioid maker’s CFO from 2012 to 2017, was disclosed in papers filed on Friday in federal court in Phoenix.
John Kapoor, the 76-year old billionaire founder of Insys Therapeutics, was sentenced in January to 66 months in prison for orchestrating a system of bribery and kickbacks to physicians across the U.S. in exchange for prescribing and over prescribing large amounts of the powerful fentanyl spray, Subsys, to patients with little to no need of the drug.
Kapoor was the first ever CEO of a drug company to be convicted by the federal government in their fight to combat the opioid crisis.
A Manhattan federal judge ruled Tuesday that three doctors who pleaded guilty to taking kickbacks from Insys Therapeutics in exchange for prescribing its fentanyl-based spray Subsys will not have to pay restitution.
U.S. District Judge Kimba Wood rejected prosecutors’ argument that the doctors — Todd Schlifstein, Alexandru Burducea and Dialecti Voudouris — should be liable for all the money they billed government health insurance programs for Subsys.
