Opioid company files for bankruptcy
CHANDLER, Ariz. — An opioid manufacturing company whose founder was convicted of racketeering conspiracy for bribing doctors to prescribe its highly addictive fentanyl spray has filed for bankruptcy protection.
Chandler, Arizona-based Insys Therapeutics filed a voluntary bankruptcy petition on Tuesday and said it planned to sell all its assets and address its legal liabilities. They include $225 million the company agreed to pay earlier this month to settle federal criminal and civil charges.
Insys Founder John Kapoor and four other former executives were convicted in Boston last month of running the bribery scheme. They face 20-year prison terms but are challenging their convictions.
The company has seen the value of its stock evaporate in recent years as it battled the charges. The filing said Kapoor owns 63% of the outstanding stock.