Novartis, Merck Hit With RICO Suits Over Drug Copays

Law360, New York (July 06, 2012, 6:26 PM ET) -- Novartis Pharmaceuticals Corp. and Merck & Co. Inc. were targeted Friday in two Illinois racketeering class actions alleging the drugmakers interfered with health plan contracts by bribing participants with discounts that unlawfully made prescription plans pay higher prices for name-brand drugs.

Health and welfare benefit fund Allied Services Division Welfare Fund accused Merck and Novartis of running unlawful prescription copayment subsidy programs. They allegedly paid undisclosed kickbacks to privately insured individuals so that instead of less expensive alternatives, health plan members would choose Novartis branded drugs...
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Case Title

Allied Services Division Welfare Fund v. Merck & Co., Inc.


Case Number

3:12-cv-00766

Court

Illinois Southern

Nature of Suit

Racketeer/Corrupt Organization

Judge

J. Phil Gilbert

Date Filed

July 4, 2012


Case Title

Allied Services Division Welfare Fund v. Novartis Pharmaceuticals Corp.


Case Number

3:12-cv-00775

Court

Illinois Southern

Nature of Suit

Racketeer/Corrupt Organization

Judge

Michael J. Reagan

Date Filed

July 5, 2012

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