Breaking News

U.S. Sues Novartis Over Medicare Fraud
Download PDF
1 Star2 Stars3 Stars4 Stars5 Stars (No Ratings Yet)
Loading...

On Tuesday, the U.S. government filed a civil fraud lawsuit accusing a unit of Novartis AG of orchestrating claims based on fraudulent kickbacks and causing Medicare and Medicaid programs pay tens of millions of dollars. The suit was filed in the U.S. District Court in Manhattan. It seeks civil penalties and damages from Novartis for violating provisions of the federal False Claims Act.

U.S. Attorney Preet Bharara in Manhattan said that since 2005, Novartis Pharmaceuticals Corp had provided kickbacks under the guise of rebates and discounts to induce at least 20 pharmacies put thousands of kidney transplant patients on Myfortic, the immunosuppreassant drug marketed by Novartis. Bharara said Novartis attempted to hide the kickback scheme by not mentioning the agreements in the discount and rebate contracts with the pharmacies.

Bharara stressed, “Novartis co-opted the independence of certain pharmacists and turned them into salespeople.”

  
What
Where


He also said Novartis was a “repeat offender” which had settled health care fraud charges based on kickbacks in Sept. 2010. At the time, Novartis had agreed to pay $422.5 million to resolve all civil and criminal liability over the marketing of a number of drugs including Trileptal.

At least in one case, the complaint mentioned, that Novartis had offered a pharmacist in Los Angeles a bonus rebate of 5 percent of the pharmacy’s annual Myfortic sale. By switching as many as 1,000 patients to Myfortic, the pharmacy gained several hundred thousand dollars in the form of bonus rebates.

According to Novartis’ annual report, net sales of Myfortic totaled $579 million in 2012, experiencing a 12 percent growth against 2011.

Get JD Journal in Your Mail

Subscribe to our FREE daily news alerts and get the latest updates on the most happening events in the legal, business, and celebrity world. You also get your daily dose of humor and entertainment!!




Recently Novartis AG was in the news after the top court of India dismissed its bid to protect its patent rights over its cancer relieving drug Glivec.

The case is U.S. v. Novartis Pharmaceuticals Corp, U.S. District Court, Southern District of New York, No. 11-08196





 

RELEVANT JOBS

Attorney

USA-CA-Long Beach

Presently expanding our practice and are seeking applicants that are licensed to practice law in Cal...

Apply now

Legal Assistant / Paralegal

USA-MS-Vicksburg

Work in a busy law firm for two attorney\'s transcribing dictation, drafting and revising documents,...

Apply now

Legal Assistant

USA-NY-New York City

Job details Salary $38,000 a year Job Type Full-time Number of hires for this role ...

Apply now

Paralegal / Legal Assistant

USA-VA-Richmond

We are seeking a Paralegal Legal Assistant to become a part of our team! You will provide overall su...

Apply now

BCG FEATURED JOB

Locations:

Keyword:



Search Now

Liability Defense Attorney

USA-FL-Fort Lauderdale

Ft. Lauderdale office of our client seeks liability defense attorney with 3+ years of insurance defe...

Apply Now

Senior Family Law Associate Attorney

USA-CA-Murrieta

Murrieta office of a BCG Attorney Search Top Ranked Law Firm seeks senior family law associate attor...

Apply Now

Litigation Associate Attorney

USA-CA-San Francisco

San Francisco office of a BCG Attorney Search Top Ranked Law Firm seeks litigation associate attorne...

Apply Now

Most Popular

SEARCH IN ARCHIVE

To Top