Insys lawsuit plaintiffs balk at attempt to move up claim deadline

By Caroline Salls

Pittsburgh, Oct. 10 – Insys Therapeutics, Inc. multidistrict litigation plaintiffs raised concerns in an objection filed Thursday regarding deadlines set for governmental entities and Indian tribes to be allowed to vote on the company’s plan of reorganization, according to a filing with the U.S. Bankruptcy Court for the District of Delaware.

The plaintiffs said the court has set Dec. 9 as the deadline for governmental entities and Indian tribes to file claims against the Insys debtors.

However, the plaintiffs said the company is now asking the court to grant, on one week’s notice, a motion that states that government and tribe entities that are not currently on Insys’ schedules may not vote on the plan if their claims are not filed by Oct. 16.

“The only credible explanation for this new retroactive bar date is that it is aimed at disenfranchising government entities that have proceeded in reliance on this court’s bar date order,” the plaintiffs said in their objection.

“This very real urgency compels conversion of the cases; it is not an excuse to deploy a solicitation structure designed to disenfranchise the largest group of creditors from voting on a plan that materially affects their claims and rights.”

The specialty pharmaceutical company is based in Phoenix. The company filed bankruptcy on June 10 under Chapter 11 case number 19-11292.

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