Novartis could avoid trial with $1B settlement

May 17, 2019

Just days before a trial targeting an alleged kickback scheme launched by Novartis is set to begin, there are hints that the company could reach a massive settlement with the U.S. government. 

Federal prosecutors began investigating Novatis about six years ago, after whistleblowers raised allegations that the company had bribed doctors with extravagant meals and trips to boost prescriptions. 

As part of the lawsuit, prosecutors were planning to use nearly 80,000 incidents of alleged corruption as trial evidence. The suit also claims that Novartis scammed the government out of millions with fraudulent Medicare and Medicaid billing practices. 

Novartis has long claimed that the parties and dinners with doctors were a part of its efforts to educate healthcare providers about its products. 

Although the trial is set to begin on Monday, sources told Stat news this week that the company is looking at settling the lawsuit for about $1 billion.