Former Novartis Compliance Attorney Revives Whistleblower Claims in New Jersey Appeal

A New Jersey appeals court has revived whistleblower claims brought by a former compliance attorney at Novartis, reopening a case centred on alleged retaliation tied to internal compliance concerns.

The appellate court ruled that Cynthia Ham plausibly alleged a continuing pattern of retaliation under New Jersey’s Conscientious Employee Protection Act (CEPA), reversing an earlier decision that dismissed several claims as time-barred.

Ham, who joined Novartis in 2018 as an ethics, risk and compliance adviser, alleged she raised concerns about several company practices she believed breached federal law or regulatory standards. These included a cardiac nurse programme linked to the heart failure drug Entresto, which she claimed provided physicians with improper incentives to prescribe the medication.

She also questioned aspects of a home delivery pharmacy arrangement connected to Novartis’ acquisition of Xiidra, alleging concerns around discount arrangements, patient steering and kickbacks.

According to the complaint, Ham faced increasing retaliation after raising these issues internally, including exclusion from meetings, criticism from supervisors, human resources investigations and reassignment to a less desirable role.

Ham further alleged that Novartis interfered with her medical leave and failed to accommodate her return to work following a cancer diagnosis in 2020. She was terminated in October 2021 after the company stated her position had been eliminated.

The appeals court found that the alleged retaliatory conduct could be viewed collectively as part of a continuing violation, allowing the claims to proceed despite statutory limitation arguments.

The case now returns to the lower court for further proceedings.