Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violations

The U.S. Department of Justice wants Novartis (NVS -0.1%) to cough up $3.35B in civil fines and damages as restitution for its alleged misconduct in promoting Myfortic (to prevent organ rejection in kidney transplant recipients) and Exjade (to treat iron overload from blood transfusions) to federal healthcare programs that resulted in substantial over-payments for the meds. Specifically, the feds accuse the company of using various schemes, such as rebates, to boost sales to specialty pharmacies.

The Justice Department seeks $1.52B in damages, triple what Medicare and Medicaid paid for the two drugs as a result of the kickbacks between 2004 and 2013, and up to $1.83B in fines.

The case stems from a whistleblower lawsuit filed in 2011 by a former sales manager.

Another wrinkle in the situation is the impact the company's Corporate Integrity Agreement, signed in 2010, will have. It requires the firm to establish an internal compliance program and report violations, areas that appear to have been unaddressed.

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

http://www.thestreet.com/story/13204447/1/novartis-nvs-stock-declines-as-us-seeks-335-billion-fine.html?puc=yahoo&cm_ven=YAHOO

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

This is the End...

http://www.youtube.com/watch?v=JSUIQgEVDM4

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

Criminals and their like always endorse and encourage bad behavior. It's this lack of remorse and disregard for doing wrong that is destroying America. No integrity or character, which reflects exactly Novartis and its followers.

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

Hell yeah... The government needs to get paid. How else are they going to pay for all the debt they have created.

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

This is the only way they can raise corporate taxes and get everyone's approval....

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

3.4 billion....not including another case .....& perhaps other pending cases

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

Maybe the OIG will finally cut Novartis off from participating in Government programs like Medicare, Medicaid, DOD, and PHS. Lets see how that has impact on long term investment & stock price!

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

Good. Hope they bury this shitbag company.

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

In its filing, the Justice Department is seeking up to $1.52 billion in damages, which represents triple the amount of money that Medicare and Medicaid paid for the drugs as a result of kickbacks between 2004 and 2013. The feds are also seeking up to $1.83 billion in fines – or $5,500 to $11,000 – for each of more than 166,000 allegedly false claims that were submitted for reimbursement to the health care programs.

The case stems from a whistleblower lawsuit that was filed in 2011 by David Kester, a former Novartis sales manager. Two years ago, the Justice Department and about a dozen states joined the litigation and a trial date for the lawsuit brought by the feds is set to begin in November.

We should note that the feds also joined a separate whistleblower lawsuit filed by another former Novartis employee. In that suit, court document allege that Novartis paid for lavish trips and that speaker dinners given for doctors were purportedly kickbacks that used to induce them to prescribe Novartis drugs, according to court documents

In a statement, a Novartis spokeswoman writes us that the document filed by the feds is a pre-trial order, which is a standard procedural step in which all parties submit an overview of their case and a list of the documents and witnesses they plan to utilize at trial. Novartis continues to dispute the allegations and is continuing to defend itself in this litigation.”

The case has been closely watched so far because a key issue is the extent to which a so-called Corporate Integrity Agreement that Novartis signed in 2010 may factor into the proceedings. These agreements typically run for five years and require a company to establish an internal compliance program and report violations.

At the time that Preet Bharara, the U.S. Attorney in New York, announced the lawsuits against Novartis two years ago, he called the drug maker a “repeat offender,” and the lawsuits noted that the violations alleged in the litigation took place before and after the CIA was signed.

As we have written previously, this could pose a problem for Novartis. If the drug maker loses the case, it could theoretically face exclusion, which means it could be excluded from having contracts with federal health care programs. This could amount to a large loss of revenue.

On the other hand, the feds need to be cautious about excluding a drug maker that provides numerous needed medications, because doing so could unnecessarily harm many patients. Tellingly, the documents filed by the feds only mention damages and fines, but not the threat of exclusion.

Last month, by the way, Express Scripts agreed to pay $60 million to resolve allegations by the feds that one of its business units participated in the kickback scheme. Last year, another specialty pharmacy, BioScrip, agreed to pay $15 million to settle allegations as part of the same litigation.

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

This is what Novartis has earned for treating their employees like crap. Happy employees are productive, unhappy ones game the system or wait to screw you over.... I'm the latter. I have more off label conversations taped of my manager, my RD talking about using speakers to "increase " usage and every conference call we've had in two years, gotta love the Apps you can put on these iPads .......OIG is gonna love what is coming........

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

All the debt they create by giving the American people what they don't make guys like Romney pay for. "Keep your Govt hands off of my Medicare".

Modern "Conservitism" has devolved into those trying to conserve what the govt gives to them while keeping it away from others. Just look at the opposition to Obamacare. No one opposes the Tax Break the U.S. Fed Govt gives to our employers so that they will pay for a majority of our Health Insurance premiums but they don't like the much smaller sums given to those who buy and pay for a much larger share of their own income through the Obamacare exchanges.

That Conservatisism alright.

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

Pocket Change and table stakes / the price of doing business like the ongoing criminal enterprise Novartis and Big Pharma in the are.

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

Agree!
These "costs" are built into the profit schedule.
Oh, poor poor Pharma.
Always under assault by someone...
HAHAHAAA!!

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

SO LITTLE DAVEY KESTER GETS THE LOWEST RAISE HE HAS HAD SINCE WORKING AT NORVATIS AND THEN DECIDES THAT HE DIDNT LIKE THAT....... SO HE WHISTLEBLOWS AND ENDS UP GETTING 10% OF THE FINE. NOT A BAD PAYCHECK.

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

It really doesn't matter the reason Mr Kester decided to become a whistleblower. The feds like the evidence and Mr Kester will mostly become a hero and wealthy

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

Remember the USB flash drive that NIBR's Eric Legangneux found on a desk? He said that an outside trial lawyer was fascinated by the stuff. More to come, stay tuned! One more thing - he keeps a copy in a safe place: behind a painting at the office

 

Re: Feds want Novartis to fork over $3.4B to settle alleged False Claims Act violatio

You all can do it too ;-)
Anytime...

 

Actually 22% & $80 million total
but what's a few $ between non friends