Insys Therapeutics founder John Kapoor should repay the nearly $6 million that the company advanced to him for his criminal defense, a federal bankruptcy judge said.
Insys bylaws required the company to advance legal expenses to its directors, and Kapoor had an agreement with the company that entitled him to indemnification and advancement to the fullest extent permitted by Delaware law for any legal proceedings related to his job.
But under Delaware law and the explicit terms of the agreement, Kapoor wasn’t entitled to indemnification for willful misconduct, the US Bankruptcy Court for the District of Delaware said.
Kapoor and ...