Here are five things to know.
1. The U.S. Justice Department has joined the civil litigation, as have the states of California, Colorado, Indiana, New York, North Carolina and Virginia, according to the report, which cites a filing in U.S. District Court in Los Angeles.
2. At issue in the litigation is an alleged scheme in which Insys induced physicians to prescribe Subsys — its fentanyl-based spray. The federal government contends the alleged scheme involved speaker program fees as well as meals in exchange for the prescribing of the spray. It also alleges physicians prescribed Subsys when it was not medically necessary and that patients’ diagnoses were misrepresented, all of which resulted in reimbursement from Medicare and other federal healthcare programs, reports Reuters.
3. Insys did not have any immediate comment when contacted by Reuters.
4. The civil litigation is not the only legal issue involving Insys. There are also related criminal cases against medical practitioners and former executives and sales representatives employed by the company, according to the report.
5. The Justice Department has sought to delay the civil litigation until there is resolution in the criminal cases.
Read the full Reuters report here.
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