Private equity firm Belhealth Invesment Partners to pay $9 million to settle False Claims Act which alleged that Defendants unlawfully distributed Subsys, a rapid onset fentanyl sublinguil spray, in violation of the Controlled substances Act. The case was originally filed by Eric Young of the Young Law Group in 2016.
An amended complaint alleged that between 2013 through at least 2016, mail order specialty pharmacies Linden Care and Quick Care, under Belhealth’s control and direction, dispensed thousands of Subsys prescriptions nationwide to government healthcare programs for widespread off-label and non-medically accepted uses, despite the known high potential for abuse of the drug.
The case is captioned United States ex rel. Jane Doe v. Insys Therapeutics, No. 2:16-cv-7937-JLS-AS (C.D. Cal.). It is one of a few recent cases holding a private equity firm responsible for the activities of companies in their portfolio.
Jeffrey Newman is a whistleblower lawyer who can be reached at 978-880-4758 or at Jeff@Jeffnewmanlaw.com
