Novartis has agreed to pay $99 million to settle a consolidated wage-and-hour class action brought by current and former sales representatives at the drug company. The plaintiffs, represented by Sanford Wittels & Heisler, claimed Novartis violated state and federal labor laws by refusing to pay overtime. The Jan. 25 deal sets aside up to 30 percent of the settlement fund for the plaintiffs’ attorneys.
Southern District Judge Paul Crotty (See Profile) has preliminarily approved the settlement. He has been presiding over the case ever since a nationwide opt-in class action and two statewide class actions were consolidated before him in 2006. Cravath, Swaine & Moore has been lead counsel for Novartis, with support from Kaye Scholer, since Novartis’ previous lawyers from Vedder Price withdrew from the case in March 2011.
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