Rivas Goldstein, LLP Call : 212-541-2451 | 800-758-3278

Novartis sets aside millions to settle bribery allegations

Novartis Pharmaceuticals Corp. (Novartis) recently announced it will set aside $700 million to settle claims made by the Department of Justice (DOJ). The DOJ recently accused the pharmaceutical giant of illegally bribing physicians and other health care professionals to prescribe their medications.

The government cracked down on Novartis, stating sessions the company touted as educational meetings to inform medical professionals about their medications were “little more than social occasions” for doctors. During these gatherings, the government claims the company provided lavish dinners and other perks that were in direct violation of the Anti-Kickback Statute (AKS). The allegations stem from events that occurred from 2002 through 2011.

The allegations require the company to resolve two different issues:

  • Criminal charges. The DOJ’s health care fraud allegations can result in financial penalties and, depending on the severity of the accusations, potential prison time.
  • Violation of compliance agreement. Novartis, as a stipulation for a previous AKS violation, agreed to implement a Corporate Integrity Agreement. This compliance agreement was supposed to help the company avoid similar violations in the future. If these allegations are substantiated, the agreement failed. This could make it difficult for the company to argue that another, updated agreement would be enough to allow Novartis to continue operations in the future.

The company must navigate both issues to help ensure future success. At this time, the company is still operating, and operations will likely continue.

Navigating through these types of allegations requires careful planning and strong legal team. Those in similar situations are wise to act to protect their interests. An attorney experienced in health care fraud defense can help.

No Comments

Leave a comment
Comment Information
Email Us For A Response

Schedule A Consultation With An Attorney

Bold labels are required.

Contact Information
disclaimer.

The use of the Internet or this form for communication with the firm or any individual member of the firm does not establish an attorney-client relationship. Confidential or time-sensitive information should not be sent through this form.

close

Privacy Policy

Austin Office
3345 Bee Cave Rd, Suite 104
Austin, TX 78746

Toll Free: 800-761-5190
Phone: 512-481-8000
Fax: 512-481-0022
Map & Directions

New York Office By Appointment Only
405 Lexington Ave 26th Floor
New York, NY 10174

Toll Free: 800-758-3278
Phone: 512-481-2916
Phone: 212-541-2451
New York Law Office Map

McAllen Office By Appointment Only
1100 East Jasmine Ave
Suite 105
McAllen, TX 78501

Phone: 512-481-8000
Map & Directions

Review Us