Novartis AG Rotten Score Breakdown

In July 2020, Novartis Pharmaceuticals Corporation agreed to pay $51.25 million to resolve U.S. allegations that it illegally used charitable foundations as conduits to pay Medicare patients' co-pays for Novartis drugs. Prosecutors alleged that the arrangements functioned as kickbacks that helped subsidize the prices of Gilenya and Afinitor while shifting costs to Medicare. The settlement resolved False Claims Act allegations. Source: U.S. Department of Justice https://www.justice.gov/usao-ma/pr/novartis-agrees-pay-over-51-million-resolve-allegations-it-paid-kickbacks-through-co-pay

In July 2020, Novartis Pharmaceuticals Corporation, part of Swiss drugmaker Novartis, agreed to a $678 million settlement resolving a U.S. civil fraud lawsuit over physician speaker programs. The government alleged that Novartis used tens of thousands of events, including expensive dinners and entertainment, to provide inducements to doctors to prescribe its cardiovascular and diabetes drugs. Novartis made extensive factual admissions, including that some representatives intended honoraria to induce increased prescribing, and agreed to strict restrictions on future speaker programs. Source: U.S. Department of Justice https://www.justice.gov/usao-sdny/pr/acting-manhattan-us-attorney-announces-678-million-settlement-fraud-lawsuit-against

In June 2020, the U.S. Securities and Exchange Commission charged Novartis AG with violations of the Foreign Corrupt Practices Act's books-and-records and internal-accounting-controls provisions. The SEC found that subsidiaries or affiliates of Novartis or former subsidiary Alcon used improper payments or benefits for healthcare providers in South Korea, Vietnam and Greece in exchange for prescribing or using products. The SEC also found deficient controls in Alcon's China business. Novartis agreed to more than $112 million in disgorgement and interest; related subsidiaries separately entered DOJ resolutions. Source: U.S. Securities and Exchange Commission https://www.sec.gov/newsroom/press-releases/2020-144