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# Novartis Reserves $700 Million to Settle Whistleblower Suit
- URL: https://www.fdaweb.com/novartis-reserves-700-million-to-settle-whistleblower-suit/
- Published: 2019-07-18T12:00:00.000Z
- Updated: 2026-09-15T01:38:41.000Z
- Author: David McFarland
- Tags: Drugs, #legacy-id-D5144567

Novartis says it has reserved about $700 million to settle U.S. government allegations that it illegally enticed physicians to prescribe its drugs. A whistleblower lawsuit has accused the company of paying thousands of doctors with speaking fees, fishing trips and outings at Hooters restaurants to boost sales of hypertension drugs Lotrel and Valturna and diabetes medication Starlix. There are reports the U.S. had once sought as much as $2 billion in damages, and indications Novartis may have been close to a $1 billion settlement in May.

Novartis has denied the wrongdoing. Nevertheless, company CEO **Vas Narasimhan** told an earnings call 7/8 that the funds have been set aside as part of the company’s “efforts to resolve legacy compliance issues. Right now we’re working in settlement discussions to resolve the civil suit.”  

Last month, Bloomberg News reported that a letter from a U.S. attorney describing settlement discussions was accidentally made public for a short time before it was removed from a federal court docket. The news service [said](ttps://www.bloomberg.com/news/articles/2019-06-11/u-s-cites-significant-progress-toward-novartis-settlement) the letter indicated that “significant progress” had been made in the settlement talks and that there would be a “monetary aspect” to any settlement. It also indicated the company was negotiating a new corporate integrity agreement with the HHS Inspector General. The letter said the settlement would be “substantially complete” by June 18 and the parties would have until August 13 to finalize and execute it.