Insys’ former VP of sales has settled and turned state's evidence in an Arizona kickback suit alleging an executive-driven scheme to buy scripts for the company’s powerful opioid spray, Subsys.

Alec Burkaloff, who pleaded guilty in a Boston courthouse in November on federal racketeering charges, agreed Wednesday to forfeit $9.5 million and admit his role in a plan to induce physicians to write scripts for the company’s under-the-tongue fentanyl spray as part of a paid speaker program he personally managed.

“Individuals like Alec Burkaloff used unlawful business practices to earn millions of dollars and to fan ...