Insys Therapeutics

A United States bankruptcy court has approved the Chapter 11 Plan of Insys Therapeutics, Inc. (Insys) which allocates funds to satisfy the claims of TPPs and others concerning their purchases of Subsys®.

Insys is accused of fraudulently marketing Subsys®, a potent and highly addictive opioid medication, causing TPPs to pay for more Subsys® than they otherwise would have paid.

Who is included?

A class proof of claim was filed on behalf of TPPs (the “TPP Class”) that will cover TPP’s that have not filed their own proof of claim.

The TPP Class includes:

• Health insurers, employer-provided health care plans (including third party administrators acting on behalf of such plans), and union health and welfare funds that purchased, paid for, and/or reimbursed some or all of the purchase price for Subsys®;

• From January 1, 2013 through December 31, 2016;

• For their members, employees, insureds, participants, patients, beneficiaries, or anyone else; and

• Who have not already separately filed a proof of claim in the bankruptcy matter entitled In Re INSYS THERAPEUTICS, INC., et. al., Case No. 19-11292 (KG), pending in the United States Bankruptcy Court for the District of Delaware.

What does the Chapter 11 Plan of Reorganization provide?

The Second Amended Joint Chapter 11 Plan of Reorganization of Insys Therapeutics, Inc (the “Plan”) creates a fund to satisfy the proof of claim filed on behalf of the TPP Class concerning their purchases of Subsys®. The total amount available in this fund is dependent on the ability to liquidate and collect on the debtors’ unliquidated assets. The same fund will also be used to satisfy the claims of TPPs who are not part of the TPP Class (because they have separately filed their own proof of claim against the debtor) and insurance ratepayers. The Plan appoints a Claims Arbiter to determine how much of the fund will be used to satisfy the claims of TPPs and how much will be used to satisfy the claims of insurance ratepayers. After determining the total amount allocated to all TPP claims, the Insys Liquidating Trustee, also appointed under the Plan, will calculate a pro-rata distribution of funds to each TPP based on the electronic claim form and supporting data submitted by each TPP. All fees, costs, and expenses incurred in connection with establishing, noticing, and administering TPP Class claims shall be deducted from the funds earmarked for TPP Class claims prior to distribution to TPP Class members. After these deductions, the remainder of the fund will be distributed pro rata to TPPs who filed a valid timely claim form with adequate supporting data. The amount of money each TPP receives will depend on how much of the fund is allocated to TPPs and how much each TPP paid for Subsys® from January 1, 2013 through December 31, 2016, compared to the amount paid by all other TPPs who file valid and timely claims.

A Summary of Your Rights and Choices:

Your Legal Rights Are Affected Even If You Do Not Act.

Your Legal Rights and Options
File a Claim Electronically	This is the only way to receive money from the bankruptcy Plan.	Due May 18, 2020
Object to the Proposed Allocation	If you file a claim and do not agree with the amount of funds you will receive from the pro-rata distribution, you may write to the Court explaining why you don’t agree with the calculation.	To be determined *
Go to the Hearing on the Motion to Approve the Calculated Pro-Rata Distribution of Funds	Once the Insys Liquidating Trustee files a motion for the Court to approve the funds calculated pro-rata distribution of funds among TPPs who have filed claims, you may ask to speak in Court about your opinion of the proposed allocation.	To be determined *
Do Nothing	If you do nothing, you will NOT get a payment from the bankruptcy proceedings. Because of the bankruptcy, you will no longer have a right to sue the Debtors about the claims related to their fraudulent marketing of Subsys®.