The U.S. Government is investigating Swiss pharmaceutical company Novartis for providing kickbacks to doctors. The U.S. has asked for records for around 80,000 events where doctors were treated to fine food and drink. The company described these events as “educational” though it is suspected that these were actually illegal kickbacks.
Whoops says Novartis.
Novartis pharmaceuticals has settled part of its False Claims Act liabilities for $390 million.
A whistleblower-initiated lawsuit originally filed in 2012 by former Novartis employee David Kester alleges the pharmaceutical giant engaged in illegal referral agreements with specialty pharmacies to boost sales of its drugs.
Two recent whistleblower complaints filed against pharmaceutical giant Novartis, alleging systemic kickback schemes, could potentially cost the company more than $3 billion.
U.S. District Court Judge Paul G. Gardephe gave the green light to a False Claims Act lawsuit alleging the company's cardiovascular division violated Federal and New York stte anti-kickback statutes.