ARIZONA NEWS

Arizona AG files consumer fraud lawsuit against Insys founder, execs

Jul 18, 2019, 1:30 PM | Updated: 3:04 pm

In this Jan. 30, 2019, file photo, Insys Therapeutics founder John Kapoor leaves federal court in B...

In this Jan. 30, 2019, file photo, Insys Therapeutics founder John Kapoor leaves federal court in Boston. The Justice Department says opioid manufacturer Insys Therapeutics has agreed to pay $225 million to settle federal criminal and civil investigations. The settlement announced Wednesday, June 5, 2019 includes a five-year deferred prosecution agreement. (AP Photo/Steven Senne)

(AP Photo/Steven Senne)

PHOENIX — Arizona Attorney General Mark Brnovich on Wednesday filed a lawsuit against former executives of a Chandler-based opioid manufacturer, alleging they engaged in a fraudulent marketing scheme that increased the sales of the company’s highly addictive opioid prescription drug that contains fentanyl.

The lawsuit against Insys founder John Kapoor and two of his former executives alleges they violated the Arizona Consumer Fraud Act by instructing employees to provide false and misleading information to insurers in order to secure prescriptions of fentanyl-laced Subsys for patients, according to a press release.

The lawsuit asks for restitution for consumers, the surrender of all profits from the alleged conduct and an injunction to ban Kapoor and his executives from marketing or selling pharmaceuticals in Arizona.

“It’s important that government doesn’t interfere with doctor-patient relationships and the ability for individuals to adequately manage their pain,” Brnovich said in the release.

“However, when pharmaceutical companies engage in unethical and greedy behavior that helps fuel the opioid crisis in our state, they must be held accountable.”

Insys employees were instructed to mislead insurance companies by telling them patients who were prescribed Subsys had cancer when they did not, according to the lawsuit.

Insys Lawsuit by KTAR News on Scribd

Insys executives also told employees to bribe health care providers with “lucrative fees” in exchange for doctors writing more prescriptions of Subsys, the lawsuit says.

Insys has sold over $1 billion worth of Subsys to date, according to the press release.

Brnovich also filed a lawsuit in 2017 against Insys. Since then, the company has admitted to bribing doctors, filed for bankruptcy and pleaded guilty to federal charges.

Array

We want to hear from you.

Have a story idea or tip? Pass it along to the KTAR News team here.

Arizona News

Two Arizona Department of Economic Security Employees were convicted of receiving bribes to approv...

David Veenstra

2 state employees convicted of receiving bribes

Two Arizona Department of Economic Security Employees were convicted of receiving bribes to approve unemployment insurance claims.

6 hours ago

pay raise for troopers Arizona Department of Public Safety 2025...

Serena O'Sullivan

Katie Hobbs says DPS troopers, who seized 2,647 pounds of fentanyl pills last year, deserve 5% raise

Democratic Gov. Katie Hobbs reiterated her desire to institute a pay raise for troopers with the Arizona Department of Public Safety on Tuesday.

7 hours ago

FILE - This undated booking photo provided by the Arizona Department of Corrections, Rehabilitation...

David Veenstra

Arizona Supreme Court grants request to carry out state’s 1st execution since 2022

The Arizona Supreme Court granted a request to carry out the state's first execution since 2022, authorities announced on Tuesday.

10 hours ago

An Arizona woman pleaded guilty in a fraud scheme that generated millions of dollars for herself an...

David Veenstra

Arizona woman pleads guilty in fraud scheme that benefited North Korea

An Arizona woman pleaded guilty in a fraud scheme that generated millions of dollars for herself and for North Korea. 

10 hours ago

A retired deputy from the Los Angeles County Sheriff's Department was convicted of luring a minor i...

David Veenstra

Retired LA deputy convicted of luring a minor in Arizona

A retired deputy from the Los Angeles County Sheriff's Department was convicted of luring a minor in Arizona, authorities announced on Tuesday.

12 hours ago

Man shot in head in Tempe...

KTAR.com

Man shot in head in Tempe trying to drive himself to hospital crashes into vehicles

A man who was shot in the head and attempting to drive himself to the hospital crashed into two vehicles on Tuesday afternoon, authorities said.

13 hours ago

Sponsored Articles

...

Bright Wealth Management

How IRAs are a helpful tool in retirement planning

When it comes to retirement planning, individual retirement accounts (IRAs) can be a great tool for income growth.

...

Fiesta Bowl Foundation

Join us for the 52nd annual Vrbo Fiesta Bowl Parade

The 52nd annual Vrbo Fiesta Bowl Parade presented by Lerner & Rowe returns on Saturday, December 28, at 10 a.m.

...

Day & Night Air Conditioning, Heating and Plumbing

Why a Heating Tune-Up is Essential Before Winter

PHOENIX, AZ — With cooler weather on the horizon, making sure your heating system is prepped and ready can make all the difference in staying comfortable this winter.

Arizona AG files consumer fraud lawsuit against Insys founder, execs