Novartis To Settle Sales Reps' OT Claims For $99M

Law360, New York (January 25, 2012, 12:36 PM EST) -- Novartis Pharmaceuticals Corp. has agreed to pay $99 million to resolve claims brought in New York federal court by a class of drug sales representatives who allege they were misclassified as exempt from overtime pay, the parties said Wednesday.

U.S. District Judge Paul A. Crotty on Tuesday preliminarily approved the deal, to which both sides agreed, although the issue of the overtime status of pharmaceutical sales representatives remains hotly contested and is currently being reviewed by the U.S. Supreme Court.

If the settlement garners final approval, it will resolve wage-and-hour claims claims first asserted by the sales representatives in 2006, as...

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