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# Novartis Settles ‘Sham Speaker Programs’ for $678 Million
- URL: https://www.fdaweb.com/novartis-settles-sham-speaker-programs-for-678-million/
- Published: 2020-07-06T12:00:00.000Z
- Updated: 2026-09-14T16:19:51.000Z
- Author: David McFarland
- Tags: Drugs, FDA Policy/General, #legacy-id-D5147122

The Justice Department says Novartis will pay $678 million to the federal government and several states to settle a whistleblower’s civil fraud suit alleging that the company violated the False Claims Act and anti-kickback laws by providing doctors cash payments, recreational outings, lavish meals, and expensive alcohol to induce them to prescribe Novartis cardiovascular and diabetes drugs. A department [statement](https://www.justice.gov/usao-sdny/pr/acting-manhattan-us-attorney-announces-678-million-settlement-fraud-lawsuit-against?ref=fdaweb.com) says the government alleged that Novartis organized tens of thousands of sham educational events at high-end restaurants and other venues, gave exorbitant speaker fees to doctors who gave no meaningful presentations, and provided expensive meals and alcohol to doctor attendees and their guests.

As part of the settlement approved by a New York federal court, the company also made extensive factual admissions and agreed to strict limitations on any future speaker programs, including reductions to the amount it may spend on such programs, the department says.