Novartis Reaches $390 Million Settlement in Whistleblower Lawsuit
- posted: Oct. 30, 2015
- Whistleblower Litigation
In the lawsuit, a whistleblower alleged the drug company paid illegal and improper kickbacks to various pharmacies in exchange for the extra promotion of its prescription medication. The suit was filed by a former employee of Novartis, who accused the company of providing major incentives and discounts to pharmacies connected to Exjade, Myfortic and other Novartis prescription drugs. As part of the settlement, Novartis admits to no wrongdoing and simply says the company remains committed to conducting its business ethically and responsibly.
Two other defendants in the case, BioScript Inc. and Accredo Health Group, Inc., had already agreed to settlements for $15 million and $60 million, respectively. They also cooperated in a U.S. Department of Justice investigation into Novartis. According to people familiar with the case, it had only been a matter of time before the company decided to settle rather than allow the case to go to court.
Whistleblower rights and the False Claims Act
Under qui tam provisions in the False Claims Act, private citizens of the United States have the right to file lawsuits on behalf of the federal government. As a reward for catching businesses and organizations in their wrongdoing, whistleblowers may earn anywhere between 15 and 30 percent of the funds recovered in the case.
For more than 35 years, Steve Kardell of Whistleblower Law for Managers at Clouse Dunn has protected corporate executives from misdirected internal investigations, while simultaneously pursuing damages through whistleblower laws. Attorney Kardell’s approach has secured major settlements for clients who were unnecessarily made the targets of difficult and draining internal investigations. For further guidance on conducting comprehensive internal investigations, contact Steve, a skilled Dallas attorney, at Whistleblower Law for Managers.