Former Insys Executives Must Hand Over $57 Million for Kickback Scheme

A federal judge in Massachusetts ruled that seven former Insys Therapeutics executives must pay nearly $57 million in restitution for their role in the company’s scheme to boost prescriptions of its sublingual fentanyl spray Subsys.

A jury convicted five executives, including Insys founder John Kapoor, in May 2019 of bribing doctors to prescribe the drug, often to patients who didn’t need it. Two others entered into plea bargains.

Prosecutors originally sought $306 million in restitution, arguing that the scheme harmed “an untold number of patients” as well as Medicare and private insurance companies. However, U.S. District Judge Allison Burroughs said it would be “too complicated” to calculate restitution beyond the kickback scheme.

The judge awarded $30.2 million to Medicare and $26.4 million to six private insurance companies — United, Cigna, Aetna, Caremark, Silverscript, and Horizon Blue Cross Blue Shield in New Jersey. Six patients were awarded a total of just over $10,000.

The court still has to determine whether the executives are jointly liable for the amount, or if it will be apportioned between the defendants.