Violation Tracker Individual Record

Company: 
Novartis Pharmaceuticals Corporation
Current Parent Company: 
Novartis
Penalty: 
$11,800,000
Year: 
2020
Date: 
September 14, 2020
Offense Group: 
competition-related offenses
Primary Offense: 
kickbacks and bribery
Violation Description: 

The California Attorney General announced an $11.8 million settlement against Novartis Pharmaceuticals Corporation related to allegations that the company engaged in a kickback scheme from January 2002 through November 2011 that impacted beneficiaries of Medicare and Medi-Cal. Novartis was accused of violating the federal Anti-Kickback Statute and False Claims Act, as well as the California False Claims Act, by offering payment in the form of cash, meals, and honoraria to healthcare practitioners to encourage them to prescribe certain Novartis drug products, including drugs such as Lotrel, Valturna, Starlix, Tekamlo, Diovan HCT, Tekturna HCT, and Exforge HCT, Diovan, and Exforge, to recipients of Medicare and Medicaid.

Level of Government: 
state
Action Type: 
agency action
Agency: 
California Attorney General
Civil or Criminal Case: 
civil
HQ Country of Parent: 
Switzerland
Ownership Structure of Parent: 
publicly traded
Major Industry of Parent: 
pharmaceuticals
Specific Industry of Parent: 
pharmaceuticals
Source Notes: 
If an online information source is not working, check the Violation Tracker Data Sources page for an updated link.
Parent company note: 
Parent-subsidiary relationship is current as of the most recent revision listed in the Update Log.