What foreign bribery charges did Novartis settle?
Novartis subsidiaries in South Korea, Vietnam and Greece made improper payments to healthcare providers between 2012 and 2016, while Alcon's China operations used forged contracts leading to more than $50 million in write-offs — total resolution cost roughly $347 million.
In June 2020 Novartis and its former eye-care unit Alcon resolved US Foreign Corrupt Practices Act investigations for roughly $347 million. According to the SEC, Novartis subsidiaries in South Korea, Vietnam and Greece made improper payments to health care providers between 2012 and 2016 in exchange for prescribing Novartis or Alcon products, and Alcon's China operations lacked adequate controls, using forged contracts that led to more than $50 million in write-offs.
The SEC collected about $112.8 million in disgorgement and interest, and the Justice Department more than $233 million in criminal penalties through deferred prosecution agreements. Commentators noted that Novartis had faced FCPA enforcement before, placing it in what one called the repeat offender club.