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Federal Contractor Misconduct Database (FCMD)

The federal government routinely awards contracts to companies with histories of misconduct, including contract fraud and other violations. POGO believes that providing this website will help to improve contracting decisions and increase public knowledge of how the government spends billions of taxpayer dollars each year. Read more…

U.S. ex rel. Kester, et al. v. Novartis et al. (Kickbacks, False Claims)

Dozens of states and the federal government filed a False Claims Act lawsuit alleging that Novartis paid kickbacks to specialty pharmacy chains, including AmerisourceBergen, to boost sales of Novartis’s drugs, including Gleevec, Exjade, Tasigna, Tobramycin Inhalation Solution (TOBI), and Myfortic. Novartis allegedly offered financial inducements such as referrals of patients, rebates, and discounts in exchange for the pharmacies’ agreement to recommend and increase the sales of Novartis specialty drug products and to take steps to capture an increased market share for Novartis’ products. As a result, the lawsuit alleged Novartis knowingly caused the pharmacies to submit hundreds of millions of dollars in false claims to publicly-funded health care programs. In November 2015, Novartis reached a $390 million settlement with the Department of Justice, all intervening states, and the individual who originally filed the lawsuit.

Misconduct Type
Ethics
Enforcement Agency
Multiple Agencies
Contracting Party
None
Court Type
Civil
Disposition
Settlement
Date of Original Complaint
11/14/2011
Contractors Involved Penalty
Total
Novartis AG $390,000,000
AmerisourceBergen $0
Further Information Released
DOJ Press Release 11/20/2015
Novartis Admissions 11/20/2015
Novartis Stipulation 11/20/2015
First Amended Complaint 1/8/2014
New York AG Press Release 1/8/2014
DOJ Press Release 4/23/2013

See also:

Federal Contractor Misconduct Database