AG Brnovich Announces $9.5 Million Settlement with Former VP of Sales for Insys

PHOENIX – Attorney General Mark Brnovich announced today his office reached a $9.5 million settlement with Alec Burlakoff, the former Vice President of Sales for the Chandler-based opioid manufacturer Insys Therapeutics, Inc. The Attorney General’s Office filed a consumer fraud lawsuit against Burlakoff, Insys Therapeutics, and others in August 2017, alleging that Insys and Burlakoff created and operated a scheme in which Insys paid doctors lucrative “speaker fees” in exchange for the doctors writing prescriptions for Insys’ flagship drug, Subsys. 

As part of the settlement, Burlakoff admits he unlawfully used the Insys speaker program to compensate doctors for prescribing Subsys, a fentanyl drug manufactured by Insys Therapeutics. Burlakoff also admits that doctors, who expressed a willingness to write Subsys prescriptions in exchange for payment, were targeted for participation in the speaker program.

“Individuals like Alec Burlakoff used unlawful business practices to earn millions of dollars and to fan the flames of opioid addiction," said Attorney General Mark Brnovich. "This ‘profits-over-patients’ attitude has had a devastating impact on individuals and families throughout this state.”

The settlement specifies Burlakoff is to disgorge $5.2 million in compensation he collected in Insys stock as an Insys executive and to pay another $4.3 million in civil penalties. As part of the settlement, Burlakoff also stipulates to the entry of a court order permanently prohibiting him from advertising or selling prescription pharmaceuticals in Arizona.

The Attorney General’s Office litigation against Insys is ongoing, and Burlakoff has agreed as part of the settlement that he will provide truthful and complete testimony to the State in that litigation.

A copy of the settlement.

If you believe you have been a victim of consumer fraud, please contact the Arizona Attorney General’s Office in Phoenix at (602) 542-5763, in Tucson at (520) 628-6648, or outside the metro areas at 1(800) 352-8431. Bilingual consumer protection staff is available to assist. Consumers can also file complaints online.