What are the fraudulent transfer allegations against Novartis?
States alleged Novartis drained assets from its US Sandoz subsidiary and spun it off in 2023 to shield itself from liability — a theory the August 2026 Sandoz settlement resolved, paralleling concerns in opioid litigation about companies using corporate structures to limit exposure.
The states alleged that Novartis, Sandoz's former parent, took steps to fraudulently transfer and drain assets from Sandoz, Inc., a defendant in the state antitrust complaints, and spun Sandoz off in 2023 to shield Novartis from liability. This is significant because corporate restructurings, such as spin-offs and bankruptcies, can leave plaintiffs pursuing an entity with fewer assets than the one that allegedly profited from misconduct. The August 2026 Sandoz settlement resolves allegations against Novartis AG, Sandoz AG and Sandoz Group AG, including the fraudulent transfer claims. The use of fraudulent transfer theories in this case parallels concerns raised in opioid litigation about companies using corporate structures to limit liability, notably in Purdue Pharma's and Mallinckrodt's opioid bankruptcies.