MADISON, Wis. – Attorney General Josh Kaul announced today that Wisconsin has joined the United States to settle allegations against Novartis Pharmaceuticals Corporation (“Novartis”) by reaching an agreement in principle along with twenty-seven other states and the District of Columbia.
“People should be able to be confident that they’re being prescribed medicines based on what’s best for their health,” said Attorney General Kaul. “Any drug company that uses kickbacks to influence prescription practices must be held responsible.”
The proposed settlement with Wisconsin will resolve allegations that Novartis paid kickbacks to health care practitioners in the form of cash, meals, entertainment, and honoraria payments to induce them to prescribe various medications that treat hypertension or Type 2 Diabetes. Under the settlement, Novartis agreed to pay $678 million to the United States, Wisconsin, twenty-six other states and the District of Columbia, $103 million of which resolves claims pertaining to state Medicaid programs. About $354,469.79 of the settlement resolves claims relating specifically to Wisconsin’s Medicaid program.