Opioid maker Insys Therapeutics Inc. has revised its bankruptcy windup plan in an effort to appease critics that feared the defunct company was too generous with its grants of legal immunity, WSJ Pro Bankruptcy reported. States, municipalities and Native American tribes that sued Insys for damages stemming from the opioid crisis will get a chance to challenge the company’s decisions about who can still be sued over its collapse, according to a filing in U.S. Bankruptcy Court in Wilmington, Del. The defunct company also made clear that most creditors will get pennies on the dollar of what they are owed, and the U.S. Department of Justice may get a fraction of a penny for its $283 million claim. Insys filed for chapter 11 protection in June, not long after former top executives were convicted of racketeering by a jury in Boston. The convictions, and guilty pleas by other former Insys leaders, were related to tactics that included the payment of kickbacks to drive sales of the company’s top moneymaker, Subsys. An under-the-tongue formulation of the powerful painkiller fentanyl designed for breakthrough cancer pain, Subsys was prescribed for conditions like back pain and ended up addicting many users. Insys sold off its pharmaceutical business while in bankruptcy in order to raise money to pay creditors. For weeks, the company faced opposition from many creditors to a bankruptcy plan that meant little cash for them but large barriers to continued lawsuits.
