In Hint Of What’s To Come, Novartis Puts Aside $700M To Settle Bribery Allegations Involving ‘Sham’ Speaking Events
The case centers on 80,000 events Novartis held between 2002 and 2011 that federal prosecutors allege amounted to kickbacks masquerading as educational meetings.
The Wall Street Journal:
Novartis Sets Aside $700 Million To Settle Bribery Allegations
Novartis AG set aside $700 million to settle a long-running lawsuit alleging the drugmaker treated U.S. doctors to lavish dinners and other events in return for boosting prescriptions. The case centers on 80,000 events Novartis held between 2002 and 2011 that federal prosecutors allege amounted to kickbacks masquerading as educational meetings. Those included fishing trips off the Florida coast, expensive meals at high-end restaurants like Nobu in Manhattan, and trips to Hooters locations across the country, according to court documents. (Roland, 7/18)
Stat:
Novartis Sets Aside $700 Million To Settle Bribery Charges In The U.S.
A trial had been scheduled to start in federal court in New York this past May. At the time, however, STAT reported the trial was delayed as the company began negotiating with federal prosecutors and Novartis might pay close to $1 billion in order to settle the case. A settlement would give Novartis a much-needed opportunity to dispense with a string of well-publicized cases involving bribes paid to doctors or public health employees in the U.S. and elsewhere that have tarnished its reputation. The issue has vexed Novartis chief executive Vas Narasimhan, who has made restoring the company’s corporate image a key priority since being promoted early last year.(Silverman, 7/18)
