Just days after settling a federal investigation on its fentanyl painkiller, Insys Therapeutics has filed a case for bankruptcy protection. As per an agreement with the federal government which was released last week, the company has vowed to divest of its most powerful painkiller, fentanyl, along with one of its lead product, Subsys. The company stated it will continue operations until it comes up with some plan to payback all the creditors including the Justice Department.
Company’s reputation had suffered a severe blow when it was accused of bribing doctors to prescribe its drugs. They were also accused of misleading insurers about how much the patient needed the drugs. Subsys was initially approved as an under-the-tongue spray that could be used by cancer patients only, as they were on an opioid prescription anyway. The company agreed to pay a total of USD 30 million in fine and forfeiture as part of a deal last week after pleading guilty to a total of five counts of mail fraud. The company has also agreed to pay USD 225 million in order to settle the pending charges of fraudulent conduct on their behalf. This has been the end of the road for Insys. It had already warned its investors that they well might file for bankruptcy soon. Their shares are now at 60 cents from being USD 7 a year ago.
In a rather shocking move for bankruptcy, Nature’s Existence, a Nicholasville Landscape company, filed for bankruptcy amidst complaint of unfinished work against them. The Bureau for Better Business reported they were receiving a number of complaints against them as customers reacted in a rather shell shocked manner. Customers complained that the company just didn’t turn up for work and left their work pending without any prior intimation of filing for a bankruptcy.
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