On Thursday, the New Jersey attorney general said that Insys Therapeutics founder has agreed to pay $5 million to the state to resolve a lawsuit that claimed that the founder bribed doctors of the state to boost sales of its powerful opioid, Subsys.
The lawsuit was brought by the state's attorney general and the Division of Consumer Affairs in 2017, claiming violations of the New Jersey Consumer Fraud Act and False Claims Act.
The former pharmaceutical executive of Phoenix, Arizona, was sentenced to more than five years in federal prison last year over his role in the opioid epidemic. The settlement is the state's first settlement over the opioid crisis, as per the attorney general.
The attorney general said that the founder used his position to market the addictive drugs through fraud and that the state is looking forward to additional recoveries from other opioid manufacturers and distributors who fueled the epidemic.
According to the settlement deal, the founder will pay a lump sum of $1 million first, which will be followed by another $4 million. The amount is intended to be used to fund the state's efforts to combat the opioid epidemic as well as pay for litigation expenses. The remaining funds will be given to agencies affected by the founder's alleged kickback scheme.
The settlement also bans the founder from managing, owning, or leading any business in New Jersey or from owning more than 10% stock in any corporation doing business in the state.
The director of the Office of the New Jersey Coordinator for Addiction Responses and Enforcement Strategies commented that the settlement rightly makes the founder responsible for providing financial resources needed to combat the long-lasting and destructive ripple effects of his unlawful actions.
