Novartis Is 'Stealth' Disclosing An SEC Investigation, Probes Reporter Warns

Novartis AG (ADR) NVS has received a series of downgrades within the last half of March, one of which has been attributed to an ongoing SAG investigation.

While the State Attorney General investigation has been circulated for a while now, a separate, SEC investigation is underway, according to Probes Reporter.

"Novartis made what we call a ‘stealth disclosure' of an SEC probe. That is, while their disclosures repeatedly refer to having ‘communicated' with the SEC, the company does not directly come out and say it actually under investigation. Our data confirms they are. This is typically – and willfully – done to keep an SEC investigation from showing up in searches many people routinely run on SEC filings," Probes Reporter John Gavin said.

Related Link: Citi Downgrades Novartis Following SAG Investigation

Probes Reporter's Recent Findings

In a Thursday research update, Probes Reporter stated, "These guys are playing you about an on-going, confirmed SEC investigation."

"Novartis has repeatedly ‘sort of' disclosed an SEC investigation, by stating it is ‘communicating' with the SEC about an internal investigation," the report continued, leading into an outline of events affirming the claim.

Timeline Of Events