Novartis: Counsel Resigns Over Company's Michael Cohen Deal
May 16 2018 - 2:05AM
Dow Jones News
By Max Bernhard
Novartis AG (NOVN.EB) said Wednesday that its general counsel,
Felix R. Ehrat, is retiring from his position in connection to the
company's agreement with Essential Consultants LLC, a shell company
owned by U.S. President Donald Trump's former lawyer Michael
Cohen.
"Although the contract was legally in order, it was an error. As
a co-signatory with our former CEO, I take personal responsibility
to bring the public debate on this matter to an end," Mr. Ehrat
said, referring to Joe Jimenez, the former chief executive of
Novartis.
Novartis agreed to pay Essential Consultants $1.2 million for
what it has described as Mr. Cohen's insight into health-care
policy.
The Swiss pharma giant disclosed last week that it had signed a
one-year contract with Essential Consultants to pay the company
$100,000 a month. The contract ended in February.
Novartis Chief Executive Vasant Narasimhan previously called the
company's agreement a mistake and denied any involvement.
Essential Consultants is the same company used by Mr. Cohen to
direct $130,000 last October to a former adult-film actress, known
as Stormy Daniels, to prevent her from discussing an alleged sexual
encounter with Mr. Trump. Mr. Trump denies the sexual
encounter.
Mr. Ehrat will be replaced by Shannon Thyme Klinger, who
currently holds the position of chief ethics, risk and compliance
officer.
She will be appointed on June 1, 2018, Novartis said.
"I appreciate Felix's decision even as we regret his departure.
We thank him for his contributions to the company as General
Counsel," said Joerg Reinhardt, chairman of the board of
directors.
Write to Max Bernhard at max.bernhard@dowjones.com;
@mxbernhard
(END) Dow Jones Newswires
May 16, 2018 01:50 ET (05:50 GMT)
Copyright (c) 2018 Dow Jones & Company, Inc.
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