Insys Therapeutics Inc. founder John Kapoor, convicted in 2019 of racketeering conspiracy, has been ordered to return approximately $5.9 million that the now-bankrupt company advanced to him for his criminal defense. In a final judgement issued Tuesday, Judge Gregory B. Williams of the US District Court for the District of Delaware sided with liquidating trustee William Heinrich, upholding the bankruptcy court’s recommendation. Kapoor’s objections to this reimbursement order, which argued against the structural changes to the indictment and claimed that the substantial legal fees also covered other civil matters, were rejected.
The company’s bylaws necessitate such advances to directors or officers involved in legal proceedings connected to their role in Insys. The ruling underscores the continuing legal ramifications for corporate executives embroiled in criminal conduct, particularly in contexts that lead to a company’s financial collapse.
For a more detailed account, please refer to the original report by Bloomberg Law.