New Jersey Accuses Chandler-Based Insys Therapeutics Inc. Of Fraud

Published: Monday, October 9, 2017 - 6:29pm

Another state has filed suit against Chandler-based opioid-maker Insys Therapeutics. Insys has said it is working toward a settlement with the U.S. Justice Department and has taken steps to strengthen its compliance program amid probes related to federal charges in other states, including Arizona.

On Thursday, New Jersey’s attorney general filed a complaint, accusing Insys of fraudulent marketing to promote sales of its fentanyl-based cancer pain drug.

Similar to other state filings, this suit alleges Insys paid kickbacks, and phony speaking fees to medical practitioners in exchange for prescriptions. Insys is at the center of investigations focused on Subsys, an under-the-tongue spray intended for cancer patients.

It contains fentanyl, a highly addictive synthetic opioid. In December, federal prosecutors in Boston charged six former Insys executives and managers.The company previously has paid $8.95 million to settle cases by attorneys general in Oregon, New Hampshire and Illinois.

This New Jersey’s lawsuit comes as a similar lawsuit in Massachusetts settled for $500,000.

Insys is currently facing a lawsuit in Arizona.

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