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 | Investigations Dataset

Stanford Foreign Corrupt Practices Act Clearinghouse a Collaboration with Sullivan & Cromwell LLP

Investigations Dataset

 
Investigation into Novartis' Activities in China · Novartis AG

Information & Summary

Investigation into Novartis' Activities in China

Related FCPA Matter:   Novartis' Involvement in China from 2009 to 2013 Information

Information & Summary

Investigation Name:    Investigation into Novartis' Activities in China

Trend:    None

Type of investigation:    Internal, SEC

Other Agencies Investigating/Assisting with SEC Investigation:    Unknown

Whistleblower:    Unknown

Summary

Novartis AG was a global provider of pharmaceutical and healthcare products incorporated and headquartered in Switzerland. Novartis' securities were registered with the SEC and traded on the New York Stock Exchange.

According to its SEC filings, Novartis commenced an internal investigation in 2013 concerning its local affiliates’ relationships with China-based travel agencies after reports of Chinese government investigations of other pharmaceutical companies for alleged improper use of certain China-based travel agencies to reward healthcare providers.

In March 2016, Novartis reached an agreement with the SEC to pay $25 million to settle charges that it violated the internal controls and books-and-records provisions of the FCPA, without admitting or denying the findings. Novartis also agreed for two years to report to the SEC on the status of its remediation and anti-corruption compliance.

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