The New Jersey drug manufacturer Novartis Pharmaceuticals Corporation has reached a $99 million settlement with its drug sales representatives.
The agreement, announced jointly by management and plaintiff representatives Jan. 26, resolves overtime pay disputes pending since 2006.
“We believe this settlement is in the best interest of our employees and the company,” said Novartis President Andre Wyss. “We have been litigating this case for nearly six years and the company has determined that it is time to resolve these wage and hour claims.
“We are pleased to have secured a 99 million dollar settlement wherein Novartis compensates its sales representatives for years of overtime pay,” said David Sanford, lead counsel for the plaintiffs.
The U.S. Supreme Court has agreed to hear arguments in a similar case involving the eligibility of drug sales reps for overtime pay later this year. SmithKline Beecham Corp. is the defendant in that case.
The agreement at Novartis remains subject to final court approval, which may take several months.