DOJ Sues Novartis Over Alleged Myfortic Kickback Scheme

Law360, New York (April 23, 2013, 6:05 PM ET) -- The U.S. Department of Justice on Tuesday hit Novartis Pharmaceuticals Corp. with a False Claims Act suit in New York federal court alleging the company defrauded Medicare and Medicaid through a kickback scheme with Walgreen Co. and other pharmacies that boosted sales of kidney transplant drug Myfortic.

The complaint by Manhattan U.S. Attorney Preet Bharara alleges Novartis paid kickbacks to about 20 pharmacies that were disguised as rebates or discounts. In exchange, the pharmacies allegedly switched kidney transplant patients to Myfortic, an immunosuppressant drug, from rival...
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