NEW YORK – Attorney General Letitia James today announced that her office reached an agreement to settle kickback claims against Novartis Pharmaceuticals Corporation (Novartis) and delivered $22.7 million to New York. The agreement resolves allegations that Novartis paid kickbacks to health care providers in the form of cash, lavish meals, entertainment, and honoraria payments to induce them to prescribe various Novartis-brand medications. Under the global agreement, Novartis agreed to pay $678 million to the United States, New York, and 25 other states, nearly $22.7 million of which is to resolve claims relating specifically to New York’s Medicaid program.
“New Yorkers trust that their health care providers are prescribing medications in the best interest of patients,” said Attorney General James. “Novartis and its team of greedy doctors betrayed that trust by duping patients into taking medication as part of a fraudulent kickback scheme and cheated the state out of millions while putting the health and safety of countless individuals at risk. My office will continue to do everything in its power to protect New Yorkers and hold accountable any bad actors who attempt to break our laws or harm our residents.”