GOING DOWN

Opioid Producer Insys Files for Chapter 11 Bankruptcy

Executives pleaded guilty last month to five counts of racketeering conspiracy in a federal bribery case.

Opioid manufacturer Insys Therapeutics filed for Chapter 11 bankruptcy protection Monday, a week after the company agreed to pay $225 million to settle civil and criminal investigations with the Department of Justice. In May, Insys founder John Kapoor, along with three other executives, pleaded guilty to five counts of racketeering conspiracy in a federal bribery case. Kapoor joined Forbes’ list of global billionaires in 2013 as stock in Insys was soaring with the sales of Subsys, a form of fentanyl. Insys came under heavy criticism after tone-deaf rap videos of its sales team bragging about its opioid marketing emerged during the trial, as well a witness who testified that an executive gave a lap dance to a doctor to encourage him to write more prescriptions. “After conducting a thorough review of available strategic alternatives, we determined that a court-supervised sale process is the best course of action to maximize the value of our assets and address our legacy legal challenges in a fair and transparent manner,” Insys CEO Andrew Long said in a statement announcing the bankruptcy filing. On Monday morning, Insys stock was down nearly 60 percent from where it closed Friday.