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Insys Therapeutics Board Members Resign After $225M DOJ Settlement

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Insys Therapeutics Board Members Resign After $225M DOJ Settlement

Insys Therapeutics Inc (NASDAQ: INSY) Chairman Steven Meyer and board member Pierre Lapalme will resign "upon the execution of the agreements relating to the settlement with the U.S. Department of Justice," according to Reuters.

Insys Therapeutics has agreed to pay $225 million and plead guilty to fraud to settle probes into its payment of kickbacks to induce doctors to prescribe addictive opioids. According to prosecutors, Insys used kickbacks and other illegal marketing practices to boost sales of a drug called Subsys.

The drug is extremely powerful and the risk of addiction and overdose is considered so formidable that the Food and Drug Administration requires doctors to undergo special training before they are allowed to prescribe it.

Insys shares traded higher by 28 percent to $1.11 at time of publication Thursday.

Related Links:

Insys Plunges 70% After Bankruptcy Warning

Piper Jaffray Loses Confidence In Insys Therapeutics, Downgrades Stock

 

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