Violation Tracker Individual Record

Company: 
Novartis Pharmaceuticals Corporation
Current Parent Company: 
Novartis
Penalty: 
$642,000,000
Year: 
2020
Date: 
July 1, 2020
Offense Group: 
government-contracting-related offenses
Primary Offense: 
False Claims Act and related
Secondary Offense: 
kickbacks and bribery
Violation Description: 

Novartis Pharmaceuticals Corporation agreed to pay over $642 million in separate settlements resolving claims that it violated the False Claims Act. The first settlement pertained to the company's alleged illegal use of three foundations as conduits to pay the copayments of Medicare patients taking Novartis's drugs Gilenya and Afinitor. The second settlement resolved claims arising from the company's alleged payments of kickbacks to doctors. A portion of the total went to the states to resolve litigation brought by attorneys general (see separate entry).

Level of Government: 
federal
Action Type: 
agency action
Agency: 
Justice Department Civil Division
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.