Novartis Ordered to Face US Lawsuit Over Doctor Kickbacks

[misskit]

NEW YORK—
A federal judge said Novartis AG must face a U.S. government lawsuit accusing the Swiss drug maker of paying multimillion-dollar kickbacks, including a $9,750 dinner for three at a Japanese restaurant, to induce doctors to prescribe its drugs.

U.S. District Judge Paul Gardephe in Manhattan on Tuesday let the government pursue its entire lawsuit, brought under the federal False Claims Act. He also said New York can pursue most of its state law claims in a related lawsuit.

Julie Masow, a Novartis spokeswoman, said the Basel-based company is reviewing Gardephe's 90-page decision, and will continue to defend itself against the allegations.

The federal government's lawsuit is one of two it filed in April 2013 against Novartis, seeking triple damages over alleged kickbacks to doctors.

Authorities claim that Novartis caused Medicare and Medicaid to pay millions of dollars in reimbursements from 2002 to 2011 based on kickback-tainted claims for drugs such as Lotrel and Valturna to treat hypertension, and the diabetes drug Starlix.

They said these resulted from the East Hanover, New Jersey-based Novartis Pharmaceuticals Corp unit having lavished hefty speaking fees on doctors to appear at thousands of sham programs that were merely “social occasions,” where little work got done.

Authorities said Novartis also feted some doctors at high-end restaurants such as the Japanese restaurant Nobu in Dallas, Smith & Wollensky in Washington, D.C. and the three Michelin-starred L20 in Chicago, while others dined at the lower-end Hooters.

Novartis allegedly spent over $65 million and conducted more than 38,000 speaker programs for Lotrel, Valturna and Starlix alone over a decade. One doctor was allegedly paid to speak at his own office eight times.


Novartis Ordered to Face US Lawsuit Over Doctor Kickbacks

[pseudolus]

Good old US government attacking the US companies competition completely ignoring their kick backs and corruption.

[misskit]

Be fair. Abbott was sued last year for the same thing.

[Necron99]

If you want to see how corrupt it is watch this movie based on the true story of a nurse who died from a needle stick aids infection.

Puncture (2011) - IMDb

Good movie to boot. Torrents are out there.