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`Case 1:11-cv-00071-PGG Document 343 Filed 07/02/20 Page 1 of 7Case 1:11-cv-00071-PGG Document 346 Filed 07/21/20 Page 1 of 7
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`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
`UNITED STATES DISTRICT COURT
`SOUTHERN DISTRICT OF NEW YORK
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`UNITED STATES OF AMERICA,
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`Plaintiff-Intervenor,
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`v.
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`NOVARTIS PHARMACEUTICALS CORP.,
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`Defendant.
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`11 Civ. 0071 (PGG)
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`STIPULATION AND ORDER
`OF SETTLEMENT AND
`DISMISSAL BETWEEN THE
`UNITED STATES AND
` RELATOR
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`:::::
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`::x
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`WHEREAS, this Stipulation and Order of Settlement and Release (the “Relator
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`Stipulation”) is entered into between the United States of America (the“ United States”), by its
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`attorney, Audrey Strauss, the Acting United States Attorney for the Southern District of New
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`York, and relator Oswald Bilotta (“Relator” and, together with the United States, the “Parties”),
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`through his undersigned counsel;
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`WHEREAS, in January 2011, Relator filed a complaint in the above-captioned action in
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`the United States District Court for the Southern District of New York (the “Court”) under the qui
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`tam provisions of the False Claims Act, as amended, 31 U.S.C. § 3729 et seq. (the “FCA”), which
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`complaint was subsequently amended on October 19, 2012 as of right, on April 3, 2013 (pursuant
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`to an unopposed motion dated March 21, 2013), and on July 10, 2013 (pursuant to a stipulation
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`dated July 8, 2013), alleging, inter alia, that defendant Novartis Pharmaceuticals Corporation
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`(“Defendant” or “Novartis”) violated the FCA and the Anti-Kickback Statute, 42 U.S.C. § 1320a-
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`7b(b) (the “AKS”), by, inter alia, paying doctors remuneration to prescribe the drugs Lotrel,
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`Valturna, Starlix, Tekturna, Tekturna HCT, Diovan, Diovan HCT, Exforge and Exforge HCT
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`through the mechanism of speaker program honoraria and related misconduct (the “Relator
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`Action”);
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`WHEREAS, on April 26, 2013, the United States intervened in the above-referenced qui
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`tam action by filing a Notice of Election to Intervene and Complaint in Intervention, in which it
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`is asserting claims against Novartis under the FCA and common law;
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`WHEREAS, on August 26, 2013, the United States filed an Amended Complaint in
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`Intervention (the “Government Complaint”), alleging that (i) from January 1, 2002, through
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`November 21, 2011, Novartis offered and paid remuneration in the form of cash, meals, alcohol,
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`hotels, travel, entertainment, and honoraria payments to health care practitioners (“HCPs”) who
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`spoke at or attended Novartis speaker events, roundtables, speaker training meetings or lunch-n-
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`learns to induce them to prescribe Lotrel, Valturna, Starlix, Tekamlo, Diovan HCT, Tekturna
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`HCT, and Exforge HCT, in violation of the AKS, and thereby caused false claims for
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`prescriptions for those drugs to be submitted to and paid by Medicare, Medicaid, the Department
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`of Veterans Affairs and TRICARE, in violation of the FCA; and (ii) from January 1, 2010,
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`through November 21, 2011, Novartis paid remuneration in the form of cash, meals, alcohol,
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`hotels, travel, entertainment, and honoraria payments to HCPs who spoke at or attended Novartis
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`speaker events, roundtables, speaker training meetings or lunch-n-learns to induce them to
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`prescribe Diovan, Tekturna, and Exforge, in violation of the AKS, and thereby caused false
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`claims for prescriptions for Diovan, Tekturna, and Exforge to be submitted to and paid by
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`Medicare, Medicaid, the Department of Veterans Affairs and TRICARE, in violation of the FCA
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`(the “Covered Conduct”);
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`WHEREAS, on or about June 29, 2020, the United States, Novartis, and Relator entered
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`into a Stipulation of Settlement and Dismissal (the “Settlement Agreement”);
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`WHEREAS, pursuant to Paragraph 3 of the Settlement Agreement, Defendant agreed to
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`pay the United States (i) $591,442,008.92 plus interest (the “Settlement Amount”), and
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`$38,406,717.42 million (the “Forfeiture Amount”) as money subject to forfeiture to the United
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`States under 18 U.S.C. § 981(a)(1)(C), to resolve the claims of the United States for the Covered
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`Conduct;
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`WHEREAS, Relator has asserted that, pursuant to 31 U.S.C. § 3730(d)(l), he is entitled to
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`receive a portion of the Settlement Amount (the “Relator Share Claim”);
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`WHEREAS, Relator agrees that he is not entitled to receive any portion of the Forfeiture
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`Amount; and
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`WHEREAS, the Parties mutually desire to reach a full and final compromise of the Relator
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`Share Claim pursuant to the terms set forth below.
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`NOW, THEREFORE, in reliance on the representations contained herein and in
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`consideration of the mutual promises, covenants, and obligations in this Relator Stipulation, and
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`for good and valuable consideration, receipt of which is hereby acknowledged, the Parties agree
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`as follows:
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`1. Contingent upon receipt by the United States of the full Settlement Amount, the
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`United States will pay Relator, c/o Shepherd Finkelman Miller & Shah, LLP, as attorneys for
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`Relator (“Relator’s Counsel”), eighteen and one-half percent (18.5%) of the payment of the
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`Settlement Amount received from Defendant ($109,416,771.65 plus 18.5% of the interest paid on
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`the Settlement Amount) in accordance with written instructions provided by Relator’s Counsel
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`within a reasonable time after the United States’ receipt of the payment of the Settlement Amount.
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`The obligation to make the payment to the Relator under this Paragraph is expressly conditioned
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`on, and only arises with, the receipt by the United States of the payment of the Settlement Amount
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`from Defendant required by the Settlement Agreement. In the event that Defendant fails to make
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`full payment of the Settlement Amount, the United States shall have no obligation to make any
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`payment to the Relator.
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`2. Relator, for himself and his heirs, successors, attorneys, agents, and assigns, agrees
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`that this settlement is fair, adequate, and reasonable under all circumstances, and will not challenge
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`the Settlement Agreement, including but not limited to the Settlement Amount, pursuant to 31
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`U.S.C. § 3730(c)(2)(B) or other applicable law, and expressly waives the opportunity for a hearing
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`on any such objection, pursuant to 31 U.S.C. § 3730(c)(2)(B) or other applicable law. Relator, for
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`himself and his heirs, successors, attorneys, agents, and assigns, further agrees that he will not seek
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`and is not entitled to receive any portion of the Forfeiture Amount.
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`3.
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`In agreeing to accept payment of the Relator’s share set forth in Paragraph 1 above,
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`and upon payment thereof, Relator, for himself and his heirs, successors, attorneys, agents, and
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`assigns, releases and is deemed to have released and forever discharged the United States and its
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`agencies, officers, employees, servants, and agents from any claim for a share of any proceeds of
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`the Settlement Agreement pursuant to 31 U.S.C. § 3730 or other applicable law, and from any and
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`all claims against the United States and its agencies, officers, employees, servants, and agents
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`arising from or relating to the Settlement Agreement or any claim in the Relator Action or the
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`Government Complaint.
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`4.
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`This Relator Stipulation does not resolve or in any manner affect any claims the
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`United States has or may have against Relator arising under Title 26, U.S. Code (Internal Revenue
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`Code), or any claims that the Parties may have arising under this Relator Stipulation.
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`5.
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`The United States and Relator agree that if the Settlement Agreement is held by a
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`court not to be “fair, adequate, and reasonable,” as required under 31 U.S.C. § 3730(c)(2)(B), this
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`Relator Stipulation is null and void.
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`6.
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`This Relator Stipulation shall inure to the benefit of and be binding only on the
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`Parties, their successors, assigns, and heirs.
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`7.
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`This Relator Stipulation shall become final, binding, and effective only upon entry
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`by the Court.
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`8.
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`This Relator Stipulation constitutes the entire agreement of the Parties with respect
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`to the subject matter of this Relator Stipulation and may not be changed, altered, or modified,
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`except by a written agreement signed by the Parties specifically referring to this Relator
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`Stipulation.
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`9.
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`This Relator Stipulation is governed by the laws of the United States. The exclusive
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`jurisdiction and venue for any dispute relating to this Relator Stipulation is the United States
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`District Court for the Southern District of New York. For purposes of construing this Relator
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`Stipulation, this Relator Stipulation shall be deemed to have been drafted by all Parties to it and
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`shall not, therefore, be construed against any Party for that reason in any subsequent dispute.
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`10. This Relator Stipulation may be executed in counterparts, each of which shall
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`constitute an original and all of which shall constitute one and the same agreement.
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`Case 1:11-cv-00071-PGG Document 343 Filed 07/02/20 Page 6 of 7Case 1:11-cv-00071-PGG Document 346 Filed 07/21/20 Page 6 of 7
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`For the United States of America:
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`Dated: July 2, 2020
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`AUDREY STRAUSS
`Acting United States Attorney
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`By:/s/ Jacob M. Bergman
`JEANNETTE A. VARGAS
`MÓNICA FOLCH
`JACOB T. LILLYWHITE
`PIERRE G. ARMAND
`JENNIFER A. JUDE
`JACOB M. BERGMAN
`Assistant United States Attorneys
`86 Chambers Street, Third Floor
`New York, NY 10007
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`For Relator Oswald Bilotta:
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`Dated: _________, 2020
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`SHEPHERD FINKELMAN MILLER & SHAH, LLP
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`By:
` JAMES E. MILLER
` Attorney for Relator
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` OSWALD BILOTTA
` Relator
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`SO ORDERED ON THIS ____ DAY OF _______, 2020:
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`HON. PAUL G. GARDEPHE
`UNITED STATES DISTRICT COURT JUDGE
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`6
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`Case 1:11-cv-00071-PGG Document 343 Filed 07/02/20 Page 7 of 7Case 1:11-cv-00071-PGG Document 346 Filed 07/21/20 Page 7 of 7
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`For the United States of America:
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`Dated: _________, 2020
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`AUDREY STRAUSS
`Acting United States Attorney
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`By:
`JEANNETTE A. VARGAS
`MÓNICA FOLCH
`JACOB T. LILLYWHITE
`PIERRE G. ARMAND
`JENNIFER A. JUDE
`JACOB M. BERGMAN
`Assistant United States Attorneys
`86 Chambers Street, Third Floor
`New York, NY 10007
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`For Relator Oswald Bilotta:
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`Dated: July 2, 2020
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`SHEPHERD FINKELMAN MILLER & SHAH, LLP
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`By:
` JAMES E. MILLER
` Attorney for Relator
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` OSWALD BILOTTA
` Relator
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`July
`SO ORDERED ON THIS ____ DAY OF _______, 2020:
`21
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`HON. PAUL G. GARDEPHE
`UNITED STATES DISTRICT COURT JUDGE
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`6
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`DocuSign Envelope ID: 7DE85044-F43B-4648-905B-2161BD310A0C
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