New Jersey Attorney General Gurbir S. Grewal Jan. 21 announced an anticipated $5 million settlement with Insys Therapeutics Inc. founder John N. Kapoor to resolve allegations that Kapoor unlawfully orchestrated the payment of bribes to New Jersey doctors as part of a nationwide kickback scheme to boost sales of the company’s flagship opioid drug Subsys.
The remainder will be divided among state agencies affected by the alleged fraudulent scheme, as required by law, according to the attorney general’s news release.
The settlement resolves a civil lawsuit filed by the attorney general and the Division of Consumer Affairs against Kapoor in 2017, asserting violations of the New Jersey Consumer Fraud Act and False Claims Act, the release said.
The state’s 2017 complaint alleged that Kapoor directed and approved a campaign to fraudulently market Subsys – a sublingual fentanyl spray approximately 50 times stronger than heroin and one hundred times more potent than morphine – to boost sales in New Jersey and elsewhere.
Although the U. S. Food and Drug Administration approved Subsys only for the narrow purpose of treating breakthrough pain in opioid-tolerant cancer patients, the state alleged that Kapoor arranged for Insys to bribe healthcare professionals to write Subsys prescriptions for other purposes and at higher doses than appropriate, the attorney general’s office said.