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 | Investigations Dataset

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

Investigations Dataset

 
Investigation into Novartis and Alcon's Activities in Asia and Russia · Novartis AG

Information & Summary

Investigation into Novartis and Alcon's Activities in Asia and Russia

Related FCPA Matter:   Novartis' Involvement in Multiple Countries between 2012 and 2016 Information

Information & Summary

Investigation Name:    Investigation into Novartis and Alcon's Activities in Asia and Russia

Trend:    None

Type of investigation:    SEC, DOJ

Other Agencies Investigating/Assisting with SEC/DOJ 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. During the relevant period, Novartis was the sole owner of Alcon Inc., an eye care company, which it had acquired in 2011 and later spun off in 2019.

In a 6-K filed on July 18, 2017, Novartis disclosed that in the second quarter of 2017, the company had received document requests and subpoenas from the DOJ and SEC requesting information concerning Alcon’s business practices in Asia and Russia. Novartis said it was cooperating with the agencies' investigations.

In a 20-F filed on January 30, 2019, Novartis diclosed that the company had received additional document requests and subpoenas in 2018 from the DOJ and SEC requesting information concerning Alcon accounting, internal controls and business practices in Asia and Russia, including revenue recognition for surgical equipment and related products and services, as well as relationships with third-party distributors, both before and after Alcon became part of the Novartis Group. Novartis also disclosed that it was in the process of spinning off Alcon, and Novartis would indemnify Alcon for any monetary liabiliities sustained in connection with the investigation.

In a 20-F filed on January 29, 2020, Novartis reported that the spin-off was complete and that both Alcon and Novartis were cooperating with the DOJ and SEC investigations. The indemnification agreement remained in force.

On June 25, 2020, the DOJ and SEC brought enforcement actions against Novartis as well as Novartis and Alcon subsidiaries.

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