Government Says Novartis Can't Escape FCA Kickback Suit

Law360, New York (June 30, 2014, 4:21 PM EDT) -- Federal prosecutors urged the New York Southern District Court not to dismiss False Claims Act complaints against Novartis Pharmaceuticals Corp. on Friday, saying that the government doesn't need to plead a "but for" connection between the pharmaceutical's alleged kickback scheme and the law's falsity standard.

Novartis and some pharmacies face 26 state false claims causes of action, as well as a reverse false-claims allegation under the federal FCA for receiving disguised cash payments and patient referrals in exchange for recommending Novartis products, such as iron reduction drug Exjade and organ transplant drug Myfortic.

Novartis said in its latest motion to dismiss...

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