Novartis Inks $20M Deal To End Texas Medicaid Fraud Suit

Law360, New York (October 30, 2012, 2:44 PM EDT) -- Novartis Pharmaceuticals Corp. will shell out nearly $20 million to settle a former employee's whistleblower lawsuit accusing the drugmaker of ripping off Medicaid by promoting off-label uses of eczema treatment Elidel, the Texas attorney general said Tuesday.

The state overpaid because Novartis urged doctors to prescribe the ointment for children younger than 2 years old despite lacking U.S. Food and Drug Administration approval for such use, Attorney General Greg Abbott said.

In addition, state officials said the company’s “unlawful and deceptive marketing” campaign involved recommending the...
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