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Novartis AG (NVS) Loses New Bid To Dismiss U.S. Kickback Lawsuits


8/8/2014 5:58:00 AM

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(Reuters) - A Manhattan federal judge on Thursday said the U.S. Department of Justice may pursue most of its lawsuit accusing Novartis AG of civil fraud for allegedly using kickbacks to boost sales of drugs covered by Medicare and Medicaid.

U.S. District Judge Colleen McMahon allowed the government to continue its False Claims Act case against the Swiss drugmaker over claims submitted to Medicare and some state Medicaid programs for Myfortic, used by patients with kidney transplants, and Exjade, for patients who get blood transfusions.

She also dismissed a part of the case covering claims submitted to state Medicaid programs other than New York's prior to March 23, 2010, when the Affordable Care Act, also known as Obamacare, was enacted.

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