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Novartis Settles Allegations of Kickbacks to Healthcare Providers

  • California AG Xavier Becerra reached a settlement with pharmaceutical company Novartis Pharmaceuticals Corporation (“Novartis”) to resolve allegations that it engaged in a kickback scheme in violation of the federal Anti-Kickback Statue and False Claims Act, as well as the California False Claims Act.
  • The case, which was brought by the U.S. Department of Justice (“DOJ”) and 30 states and arose out of a whistleblower complaint, alleges that Novartis offered illegal incentives in the form of cash, meals, and honoraria to healthcare providers to encourage them to prescribe certain Novartis drugs to Medicare and Medicaid recipients.
  • Under the terms of the settlement agreement, Novartis will pay California $11.8 million. This settlement is part of a global settlement reached earlier with DOJ, in which Novartis agreed to pay over $591.4 million, forfeit an additional $38.4 million under the Civil Asset Forfeiture Statute to the United States, and pay over $48 million to resolve state Medicaid claims.