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Top Executive Charged in Opioid Fraud Case

Insys Therapeutics Inc. founder John Kapoor was charged with conspiracy to commit fraud for his involvement in a scheme to bribe doctors to prescribe the company’s opioid pain drug.

Kapoor and six other former executives are accused of bribing doctors to ”overprescribe a potent opioid and committing fraud on insurance companies solely for profit,” Acting U.S. Attorney William Weinreb said in a press release.

The executives allegedly bribed doctors to prescribe Insys’s fentanyl-based pain medicine beyond the population of cancer patients it was intended for. Authorities also accuse the group of defrauding insurers who were reluctant to pay for the drug for non-cancer patients.

A spokesperson for the company didn’t immediately comment.

The stock dropped as much as 8 percent to $6.82.