Novartis pays $346.7 million to resolve widespread FCPA offenses
Pharmaceutical giant Novartis AG and two subsidiaries (one current and one former)
agreed Thursday to pay the DOJ and SEC $346.7 million in penalties and disgorgement
to resolve FCPA offenses in
Greece,
Vietnam, and
South Korea.
In an internal administrative order, the SEC
charged Novartis AG with violating the FCPA’s books and records and internal controls provisions.
The Swiss pharma
agreed to disgorge $92.3 million plus prejudgment interest of $20.5 million.
Novartis
made over $92.3 million in profits from Novartis pays $346.7 million to resolve widespread FCPA offenses
Novartis AG and two subsidiaries (one current and one former) agreed Thursday to pay the DOJ and SEC $346.7 million in penalties and disgorgement to resolve FCPA offenses in Greece, Vietnam, and South Korea.
In an internal administrative order, the SEC charged Novartis AG with violating the FCPA’s books and records and internal controls provisions.
The Swiss pharma agreed to disgorge $92.3 million plus prejudgment interest of $20.5 million. Novartis made over $92.3 million in profits from improper conduct in Greece, Vietnam and South Korea, the SEC said.
In the criminal enforcement action, Novartis subsidiary Novartis Hellas S.A.C.I. paid a criminal penalty of $225 million and entered a three-year deferred prosecution agreement with the DOJ.
Former Novartis subsidiary Alcon Pte Ltd.
paid a separate criminal penalty of $8.9 million and also entered into a deferred prosecution agreement.
Novartis and its local subsidiaries and affiliates
made improper payments to public and private healthcare providers in Greece, Vietnam and South Korea so they would use Novartis-branded pharmaceutical products.
The conduct occurred between 2012 and 2016, the DOJ said.
In South Korea, the Novartis unit there paid over $16.3 million to third-party medical journals, some of which was improperly passed to providers as honoraria payments.
The FCPA Blogimproper conduct in Greece, Vietnam and South Korea, the SEC said.
In the criminal enforcement actio, Novartis subsidiary Novartis Hellas S.A.C.I. paid a criminal penalty of $225 million and entered a three-year deferred prosecution agreement with the DOJ.
Former Novartis subsidiary Alcon Pte Ltd. paid a separate criminal penalty of $8.9 million and also entered into a deferred prosecution agreement.
The FCPA Blog
https://fcpablog.com/2020/06/25/novartis-pays-346-7-million-to-resolve-widespread-fcpa-offenses/