DOJ Settlement Finalized - $150 Million

News broke this AM that the company has settled with the DOJ and will pay a grand total of $150M to be evenly payed out over the next 5 years. Given that the company has already allocated these funds this seems like good news when you consider all that has taken place. Thoughts?

 

Couldn't happen to a better group of individuals... scumbags

 

Getting away with murder!

Wonder if they FDA has another bomb to drop on them?

 

The SEC should go after the people who cashed in their options on the insider information when Alec was arrested.

 

So cheap. 150m is a deal. There must be a party at the home office. Saeed and Jennigs are popping bottles today.

 

Again, he said / she said doesn’t stand up in a court of law. There are many people who are surprised at this number, but I am not one of them. Insys was very strategic in how they handled this situation and upper management has proven they have someone’s ear at the DOJ given that $150M was put aside many months ago. This is a HUGE win for Insys. As for the 6 individuals - good luck. The company is officially in the clear. The market reacted favorably to this news as well - stock up 17%. Time to move on.

 

In the clear? Move on? Insys is an amputee... there is no moving on! Where’s the revenue coming from? The DOJ settled to get SOMETHING now as opposed to getting nothing in 6 months. Is the $150 mil “set aside” still there?

 

Yes. The $150M was set aside last year and has not been utilized for any company related costs. That money was allocated for the DOJ fine. Huge win for Insys.

 

Anything set aside for state lawsuits? Patient lawsuits? Wrongful termination lawsuits?

 

Yes. Insys did plan the funds for this one. Keep in mind there was also a recent layoff of the BRMs and some of the sales force. I do not think that sales will sustain the company and I strongly predict the company selling in the near future.

 

Listen genius, who would buy this company?
Purdue?

 

Don't they try to sell the products and pipeline to someone before shutting down? I guess that's what I meant.

 

Don't they try to sell the products and pipeline to someone before shutting down? I guess that's what I meant.

 

I'm curious. You say "Huge win for Insys" How do you mean that? What did they "win"?
Perhaps you believe Insys won the right to continue as a corporate entity. It would appear that for now, the DOJ fine is not,in and of itself, financially fatal. But neither is it a guarantee. If you read the actual terms of the settlement, the fine could increase by as much as 50 % (another 75 million ) if Insys does not meet it's significant obligations as per the settlement. So that's one thing.

Then there is pesky problem of brand toxicity. Insys will forever be synonymous with the worst kind of corporate corruption. A contagious sort of greed that infected not just employees, but prescribers and suppliers, any number of whom are either in prison or facing prosecutions. One very much doubts they feel like "winners".

So, if we acknowledge that Business 101 tells us two basic requirements for a successful business model are a product to sell, and a market to buy it, by this measure, Insys doesn't appear likely to occupy the "winner circle" any time soon.

 

$150m is a remarkable “win” for Insys in this particular case. Honestly a joke that the Feds would settle before the upcoming trials. But these things are indeed complicated. But Insys still has to weather a slew of state lawsuits, class action investor suits, wrongful death etc. They have two products that are dying on the vine- things are far from good despite this settlement being good from the company POV. Company will most likely be sold for whatever small bit of revenue Subsys and Syndros are worth and some amount for the pipeline. Sincerely doubt Insys will be around in 12 months.

 

I say 4-6 months

 

Your an aggressive idiot. This is a huge win because it should have been double.

Your business 101 was probly taken at some low rent mid west school.

 

Oooooo... someone’s irritated!!! LOL
Here’s a math problem for you Harvard.
Don’t ALL assets need to be disclosed in financial reporting? Why would the $150 mil (set aside) not be subject to a mention in the Q2 statements. Perhaps the $123 mil is all that’s left..... period.
Cant imagine the execs are performing a magic trick as a distraction until they can squeeze more money from poor dying Insys

 

For heaven's sake, if you wish to question someone's education, you "probly" should utilize a spelling app.

 

You're exactly right, there is NO 150 mil "set aside" if so it would have to be disclosed. Not even a tourniquet will stop the hemorrhaging. People stay there as most of them probably are overpaid. Wake up people

 

SHOULD MAKE KAPOOR PAY FOR THIS TOO!