Insys Therapeutics filed for Chapter 11 bankruptcy protection after agreeing to a $225 million settlement with the Department of Justice.
The Daily Beast reports that Insys, which was notorious for the methods it used to convince doctors to push out more prescriptions for its drugs, agreed last week to a landmark settlement aimed at ending civil and criminal investigations into the company.
Last month, Insys founder John Kapoor and three other Insys executives pleaded guilty to five counts of racketeering conspiracy that involved outright bribing doctors to prescribe Subsys, a highly addictive painkiller that is actually a form of fentanyl.
In fact, one witness testified last month that the company went so far as to hire a former exotic dancer to give doctors lap dances in exchange for agreeing to pump out 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 announcing the bankruptcy.