You have a right to know about the provisions of the Second Amended Joint Chapter 11 Plan of Reorganization of Insys Therapeutics, Inc. (the “Plan”) and your right to file a claim for compensation under the Plan. The Notice explains the provisions of the Plan that may affect your legal rights.

The Plan creates a fund to satisfy the TPP Class 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 individual proofs of claim) 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 the 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.

In class action litigation, one or more people called “class representatives” sue on behalf of a group or a “class” of people who have similar claims. Normally in a class action, the court resolves the issues for all class members. In the context of this Chapter 11 bankruptcy proceeding, the class representative filed a class proof of claim in the bankruptcy on behalf of itself and all other similarly situated third party payors. By agreement of the Debtors, the Unsecured Creditor’s Committee and representatives of each group, including the TPP Class, the TPP Class proof of claim, along with the those of non-class TPPs who filed individual proofs of claim as well as the claims of a class of insurance ratepayers, are classified together under the Plan as Class 5 claims. Each of these claims are subject to the decision of a Court-approved Claims Arbiter who will determine how much of the funds collected to satisfy Class 5 claims under the Plan are allocated to TPPs and how much is allocated to insurance ratepayers.

The TPP Class proof of claim alleges that Insys Therapeutics, Inc., IC Operations, LLC, Insys Development Company, Inc., Insys Manufacturing, LLC, Insys Pharma, Inc., IPSC, LLC and IPT 355 LLC (the “Debtors”) fraudulently marketed Subsys®, a potent and highly addictive opioid medication, causing TPPs to pay for more Subsys® than they otherwise would have paid in the absence of such marketing.

On June 10, 2019, each of the Debtors commenced with the United States Bankruptcy Court for the District of Delaware (the “Court”) a voluntary case under chapter 11 of title 11 of the United States Code. On January 16, 2020, the Court entered a Confirmation Order, confirming the Plan. The Plan includes certain provisions for creation of a fund to satisfy the claims of TPPs and others related to the Debtor’s fraudulent marketing of Subsys®.

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. The TPP Class does not include:
• TPPs who have 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.

If you are still not sure whether you are included, you can get help by contacting the TPP Class Representative for the Insys Liquidating Trustee (ILT), or their designees, using the contact information listed in Question 11.

The Plan includes certain provisions for creation of a fund to satisfy the claims of TPPs and others related to the Debtors’ fraudulent marketing of Subsys®. The total amount available in the 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 in the bankruptcy proceedings) as well as insurance ratepayers. The Plan appoints a Claims Arbiter to determine how much of these funds 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 distribution 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 claims shall be deducted from the funds earmarked for TPP claims prior to distribution to TPPs. 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 the Liquidated Trustee is able to recover and how much of the funds are 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. Please note that the Court has the authority to modify the calculated pro-rata distribution of funds as part of the approval process, so the calculation of your claim might change.

To be eligible to receive a payment, you must complete and submit an electronic claim and electronically upload adequate supporting data by MAY 18, 2020. The requirements for submission of a claim, including the fields and format of the data necessary to support your claim can be found on the File a Claim tab of this website.

If you do nothing, you won’t get any money from the bankruptcy funds. Filing a claim is the only way to obtain compensation for claims related to the Debtors’ fraudulent marketing of Subsys®. Because the Debtors have initiated Chapter 11 proceedings, you can't start a lawsuit or be part of any other lawsuit against the Debtors for the claims involving the fraudulent marketing of Subsys.

Yes. If you are a member of the TPP Class, you may object to the calculated pro-rata distribution amount. Within 5 days of calculation of the pro-rata allocation to all TPPs, including members of the TPP Class, the Insys Liquidating Trustee will make available to each TPP the calculated percentage allocation and the amount of its calculated individual share. Within 25 days of completion of the allocation calculation, the Liquidating Trustee will file a motion for approval of the calculated pro-rata distribution amounts with the Bankruptcy Court. You may file an objection to the motion and be heard by the Bankruptcy Court concerning that motion. The Court will hold a hearing on the motion and enter an order either approving or modifying the calculation. The date for determining the proposed calculation and for the approval hearing have not been set. Notice of the filing of the approval motion with the Bankruptcy Court, and of the date of any hearing on that motion, will be posted on-line, so check this website www.InsysTPPLitigation.com for details regularly.

To object to your calculated pro-rata share, you (or your lawyer if you have one) must file a written objection with the Court and send the objection to the Liquidating Trustee and counsel identified below. Your written objection can include any supporting materials, papers, or briefs that you want the Court to consider. Your written objection must include:

You must file your objection with the Court (address immediately below) and mail copies to the Liquidating Trustee and counsels’ addresses below so that they are received prior to the scheduled hearing. The date for determining the proposed allocation and for the approval hearing have not been set. Notice of the filing of the approval motion with the Bankruptcy Court, and of the date of the approval hearing on that motion, will be posted on-line so check this website www.InsysTPPLitigation.com regularly.

Any lawyer representing a member of the TPP Class for the purpose of making objections must also file a Notice of Appearance with the Court and mail the Notice to Counsel listed above.

Within 25 days of completion of the pro-rata calculation, the Liquidating Trustee will file a motion for approval of the proposed amounts with the Bankruptcy Court. The Court will hold a hearing on the motion and enter an order either approving or modifying the calculation. The date for determining the pro-rata calculation and for the approval hearing have not been set. Notice of the filing of the approval motion with the Bankruptcy Court, and of the date of any hearing on that motion, will be posted on-line, so check this website www.InsysTPPLitigation.com regularly.

The purpose of the approval hearing is to:

• Decide if the Bankruptcy Court should approve or modify the pro-rata calculation;
• Consider objections to the allocation motion, if any; and
• Consider any other issues that the Bankruptcy Court thinks are necessary.

No. Attendance is not required. Class Members who filed and served written objections may (but do not have to) appear at the approval hearing, in person or through an attorney hired at their own expense.

Yes, anyone can attend the approval hearing and watch. If you want to appear at the approval hearing and object, in person or through an attorney hired at your own expense, you need to file a Notice of Intent to Appear with the Court, as well as mail the Notice of Intent to Appear to the addresses listed in Question 11. The Notice of Intent to Appear must contain the following information:

• The name, address, and telephone number of the TPP Class member and, if applicable, the name, address, and telephone number of the TPP Class member’s attorney (who must file a Notice of Appearance); and
• The objection, including any supporting papers.

This notice only summarizes the portions of the Plan relevant to claims by TPP Class members. You can get a copy of the full Plan, Disclosure Statement and other important filings on the Court Documents page of this website.

Complete copies of public pleadings, Court rulings, and other filings are also available for review and copying at the Clerk’s office. The address is United States Bankruptcy Court for the District of Delaware, 824 Market Street North, 3rd Floor, Wilmington, Deleware, 19801.