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.

We want to hear from you.

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

Arizona News

(Getty Images Photo/Roberto Machado Noa)...

Police investigate death of 45-year-old woman shot in Phoenix

Police are investigating the death of a woman who died from a gunshot wound in Phoenix Friday night.
1 day ago
FILE - In this Wednesday, May 27, 2020 file photo, Medical personnel adjust their personal protecti...

Arizona reports 2,482 new COVID-19 cases, 9 more deaths Saturday

Arizona health officials on Saturday reported 2,482 new COVID-19 cases and nine additional deaths from the disease.
1 day ago
(Facebook Photo/Phoenix Police Department)...

Woman dies after being struck by vehicle in Phoenix

An adult woman was killed after getting struck by a vehicle near the intersection of East McDowell Road and North 26th Street in Phoenix on Friday night.
1 day ago
(Facebook photo/City of Phoenix, AZ USA)...

Phoenix adopts roadmap to cut emissions, reach net-zero goal by 2050

The city of Phoenix Tuesday approved a climate action plan with the goal of reaching net-zero by 2050 while also reducing 50% of emissions by 2030. 
1 day ago
(Facebook photo/Special Olympics Arizona)...

Special Olympics Arizona to kick off fall games next weekend

More than 1,000 Special Olympics athletes across the state will head to the Valley next weekend to compete in the 2021 Fall Games presented by Casino Arizona.
1 day ago
(Facebook photo/Holiday Light Experience - Salt River Fields)...

Tickets for Holiday Light Experience at Salt River Fields go on sale

People can begin buying their tickets now to the Holiday Light Experience at Salt River Fields in Scottsdale which is set to get underway in November.
1 day ago

Sponsored Articles

Schwartz Laser Eye Center

How to sharpen your vision with elective procedures

Imagine opening your eyes in the morning and being able to see clearly. You wouldn’t have to wait to put on glasses or contacts, and there would be no more blurry showers nor forgetting where your glasses are.

Grill like a pro this fall with tips from Albertsons

As the weather cools and football season kicks off, it’s a great time to fire up the grill and enjoy your favorite outdoor meals.

More stroke patients eligible for acute treatment, thanks to research

Historically, patients underwent acute stroke treatments according to strict time guidelines. But thanks to recent advancements in stroke research, more patients are becoming candidates for clot-busting drugs and endovascular therapy at specialized centers like Barrow Neurological Institute.
Arizona AG files consumer fraud lawsuit against Insys founder, execs