June 6, 2019 / 11:38 AM / 10 days ago

Opioid drugmaker Insys Chairman Steven Meyer quits after settlement with DoJ

(Reuters) - Insys Therapeutics Inc said on Thursday Chairman Steven Meyer and board member Pierre Lapalme will resign, a day after the opioid drugmaker agreed to settle a kickback probe with the U.S. Department of Justice (DoJ).

Meyer and Lapalme, on Sunday, notified the company of their decision to resign, effective upon the execution of the DoJ agreement, the company said.

Insys has agreed to pay $225 million and an operating unit of the company will plead guilty to fraud relating to kickbacks to doctors for prescribing highly addictive opioid, the U.S. Department of Justice said on Wednesday.

The settlement followed the May 2 conviction by a federal jury in Boston of five former Insys executives, including founder and former billionaire John Kapoor, of racketeering charges for contributing to the nation’s opioid epidemic.

The decision to resign from the board is not due to any disagreements relating to the company’s operations, policies or practices, Insys said.

Meyer has served as the chairman of Insys since 2017, while Lapalme has been a member of the board since 2011.

Reporting by Aakash Jagadeesh Babu in Bengaluru; Editing by Shinjini Ganguli

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