Violation Tracker Individual Record

Company: 
Insys Therapeutics
Current Parent Company: 
Insys Therapeutics
Penalty: 
$225,000,000
Year: 
2019
Date: 
June 5, 2019
Offense Group: 
government-contracting-related offenses
Primary Offense: 
False Claims Act and related
Secondary Offense: 
kickbacks and bribery
Violation Description: 

Opioid manufacturer Insys Therapeutics agreed to a global resolution to settle federal criminal and civil investigations regarding its sale of the powerful opioid Subsys. As part of the criminal resolution, Insys entered into a deferred prosecution agreement, pled guility to five counts of mail fraud, and paid 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. Both the criminal and civil investigations stemmed from Insys's payment of kickbacks and other unlawful marketing practices in connection with the marketing of Subsys.

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Justice Department Civil Division
Civil or Criminal Case: 
civil and criminal
Prosecution Agreement: 
deferred prosecution agreement
HQ Country of Parent: 
USA
HQ State of Parent: 
Arizona
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
pharmaceuticals
Specific Industry of Parent: 
pharmaceuticals
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.