Novartis faces $3.5 billion US lawsuit for false claims under Medicare and Medicaid

Novartis are being investigated by the US Justice Department and 12 States in a False Claims Act lawsuit claiming $3.4 billion based on false Medicare and Medicaid claims related to alleged kickbacks and more than $500 million government payements for prescriptions arising out of pharmacy relationships of Novartis and the offering of special deals to prefer Novartis drugs to the competition. Novartis is disputing the allegations.The drugs involved are Myfortic and Exjade. The trial is scheduled to start in November 2015. Novartis also faces claims that it provided "lavish entertainment" to certain physicians in return for increased prescriptions.