Ex-executive for Arizona drug maker to pay $9.5M settlement
PHOENIX (AP) — A former senior executive with a Chandler-based opioid manufacturer will pay $9.5 million to settle a consumer fraud suit.
The Arizona Attorney General’s Office says the settlement announced Tuesday with Alec Burlakoff also requires him to testify in the ongoing lawsuit against Insys Therapeutics Inc., which was sued along with Burlakoff and others in 2017.
The lawsuit said Insys and Burlakoff created and operated a scheme in which Insys paid doctors lucrative “speaker fees” in exchange for the doctors writing prescriptions for Insys’ flagship drug, Subsys.
Attorney General Mark Brnovich says the practice helped “fan the flames of opioid addiction.”
The $9.5 million requires Burlakoff to give up $5.2 million in compensation that he received in Insys stock and to pay an additional $4.3 million in civil penalties.