Novartis Settles 4-Nation FCPA Bribery Charge

Novartis has agreed to pay $347 million to put to rest years of investigation over alleged kickbacks and other improper conduct in Greece, Vietnam, South Korea and China. The settlement is split, with $234 million going to the Department of Justice and $113 million to the SEC. The company “profited from bribes that induced medical professionals, hospitals, and clinics to prescribe Novartis-branded pharmaceuticals and use Alcon surgical products, and they falsified their books and records to conceal those bribes,” said an assistant U.S. attorney general. Novartis general counsel Shannon Thyme Klinger said this settlement resolves all outstanding Federal Corrupt Practice Act investigations against the company, and is a milestone in the company’s commitment to resolving “legacy compliance issues.” On the domestic front, however, there may be more to come. The company is also being investigated for alleged kickbacks to U.S. doctors.