Pain Hustlers: Crime and Punishment at an Opioid Startup Originally published as The Hard Sell

by Evan Hughes

A subpoena like the one Insys received, if it leads anywhere, usually leads to a financial settlement, years down the road. The drugmaker ends up paying millions—occasionally billions, with a blockbuster drug—to “resolve” the allegations, with or without admitting guilt, and perhaps submits to new restrictions. Because no trial takes place, the underlying evidence never gets a full airing. When the settlement is announced, a spate of media coverage mars the company’s reputation. But it might be a one- or two-day news story. Investors are typically unsurprised by the settlement—they’ve been aware of the investigation through public filings—and to them it registers as good news for the company: the costly ordeal is over, the dark cloud lifted. It’s not uncommon to find that just as the Justice Department is announcing its success in holding the industry accountable, the accused company’s share price actually rises.