Genentech, Novartis Accused of Drug Kickback Schemes in Lawsuit

A whistleblower alleges that Genentech Inc. and Novartis Phamaceuticals Corp., among other drug companies, violated the False Claims Act by engaging in kickback schemes to increase prescriptions of Xolair and other anti-allergy drugs.

Whistleblower Pharma Integrity LLC filed its suit under seal in January. Judge Michelle Williams Court of the US District Court for the Central District of California lifted the seal in a June 18 order. The companies must receive the complaint by July 20, the order said.

The drug companies’ conduct led to the submission of false claims to Medicare, Medicaid, and other federal programs resulting ...