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Great Lakes Wire

Saturday, February 22, 2025

Pfizer subsidiary settles kickback allegations with $59 million payment

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Attorney General Dana Nessel | Official website

Attorney General Dana Nessel | Official website

Michigan has joined forces with the U.S. Department of Justice, 37 other states, and Puerto Rico to settle kickback allegations against Biohaven Pharmaceutical Holding Company Ltd., a subsidiary of Pfizer Inc. The pharmaceutical giant will pay $59,746,277.54 plus interest to resolve claims that Biohaven submitted false claims to Medicaid and other federal health care programs by offering kickbacks to health care providers. These incentives allegedly included cash, lavish meals, and honoraria payments aimed at encouraging prescriptions for Nurtec ODT, a migraine medication. Michigan is set to receive $155,930.53 as part of the settlement.

"Michigan taxpayers shouldn’t have to bear the cost of fraudulent corporate practices that prioritize profits over patient health care," stated Michigan Attorney General Dana Nessel. "My office remains committed to working with federal partners and attorneys general across the county to hold companies accountable for their misconduct."

The allegations cover activities from March 1, 2020, through September 30, 2022. During this period, Biohaven reportedly paid providers significant sums—sometimes exceeding $100,000—to participate in speaker programs promoting Nurtec. These events were said to violate the Anti-Kickback Statute (AKS), as they targeted Medicaid and other federal health care beneficiaries.

Some speaker events allegedly included attendees such as spouses and friends of providers who had no educational need for participation. Furthermore, certain providers reportedly attended multiple programs on identical topics while receiving expensive meals and drinks funded by Biohaven without gaining substantial educational benefits.

The case was brought forward by a whistleblower who previously worked for Biohaven and will receive a portion of the settlement funds. The investigation was conducted by a National Association of Medicaid Fraud Control Units Team alongside the Department of Justice and the United States Attorney’s Office in New York. This team included representatives from attorney general offices in Florida, New York, California, and Virginia.

In Michigan, the Attorney General’s Health Care Fraud Division managed the case on behalf of the Department. This division serves as Michigan's federally certified Medicaid Fraud Control Unit and receives 75% of its funding from the U.S. Department of Health and Human Services under a grant totaling $5,703,460 for fiscal year 2025; the remaining 25%, amounting to $1,901,152, is funded by Michigan.