Insys agrees to $225 million settlement in DoJ opioid probe
Opioid manufacturer Insys Therapeutics (Nasdaq: INSY) has agreed to a global resolution to settle the government’s separate criminal and civil investigations, the Department of Justice announced today.
As part of the criminal resolution, Insys will enter into a deferred prosecution agreement with the government, Insys’ operating subsidiary will plead guilty to five counts of mail fraud, and the company will pay a $2 million fine and $28 million in forfeiture. As part of the civil resolution, Insys agreed to pay $195 million to settle allegations that it violated the False Claims Act.
Market reaction to the settlement was positive, with Insys shares rising 3.7% to $0.86 by close of trading on Wednesday and up a further 4.4% to $0.90 in pre-market action today. Just a few weeks ago Insys parted company with its chief executive Saeed Motahari as the legal action was developing.
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