US subsidiary of Novartis disputes claims of discrimination

May 20 2010

Novartis Pharmaceuticals Corporation (NPC), a US subsidiary of Novartis AG, strongly disputes the claims of past discrimination in the sales force during the period of 2002 to 2007.

The jury decided against the Novartis US affiliate on plaintiffs' pay, promotion and pregnancy claims, awarding USD 3.3 million in compensatory damages for testifying witnesses and USD 250 million in punitive damages.

"We are disappointed in the jury's verdict. For more than ten years the company has developed and implemented policies setting high standards with regards to diversity and inclusion for the development of our employees," said Andy Wyss, Head of Pharma North America and President of Novartis Pharmaceuticals Corporation. "Since 2007 our Diversity and Inclusion programs and activities have even further increased and become an essential part of our culture and way of working. These actions have resulted in frequent recognition over the last ten years by external groups of NPC as a company committed to a diverse and inclusive environment that fosters the career goals and advancement of all employees. NPC is proud of and remains committed to its diversity efforts."

NPC has been publicly recognized ten years in a row by Working Mother magazine as one of the top 100 companies for working mothers, and since 2005, DiversityInc magazine has named NPC to The DiversityInc Top 50 Companies for Diversity® list.

NPC supports 16 Employee Resource Groups, including the field-based "Women in Leadership" group, which supports the advancement of women in the sales force. The Company invests in external programs that support and encourage the advancement of women, such as the YWCA of Central Jersey Tribute to Women in Industry (TWIN), and the Healthcare Businesswoman's Association (HBA), which provide professional forums for the development of women in leadership roles.  

NPC maintains comprehensive and generous Short-Term Disability and Family Care Leave policies that provide up to 26 weeks of paid short-term disability leave during and after pregnancy, and 12 weeks of unpaid family career leave following the birth of a child. Company benefits also include options for job shares, part-time and flex-time positions, as well as Employee Assistance Programs to assist with child care needs.

Several members of the class voluntarily testified on the Company's behalf about their positive work experiences and the corporate culture they observed to be very supportive of women. However, the class was certified in such a way that these members were not given the opportunity to opt-out of the lawsuit. Velez v. NPC was filed in 2004 and certified as a class action in 2007.