Novartis to pay $112M fine for bad accounting controls

By: Robert Freedman.

Dive Brief:

Pharmaceutical giant Novartis will pay more than $112 million to settle charges it violated accounting controls under the Foreign Corrupt Practices Act (FCPA), the Securities and Exchange Commission (SEC) announced. 

Local subsidiaries of the Basel, Switzerland-based company engaged in schemes to make improper payments or provide benefits to healthcare providers in exchange for prescribing Novartis products. 

“Poor control environments are fertile soil for malfeasance,” Charles Cain, the SEC’s chief of FCPA enforcement, said. “As illustrated by Novartis’ misconduct, weaknesses in one part of the business can often serve as a harbinger of larger unaddressed problems.”

Source: CFO DIVE (2020)

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