NEWS RELEASE
MICHIGAN DEPARTMENT OF ATTORNEY GENERAL
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LANSING – Michigan Attorney General Dana Nessel has announced that Michigan has joined the U.S. Department of Justice, 37 other states, and Puerto Rico in settling kickback allegations against Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), a subsidiary owned by pharmaceutical company Pfizer, Inc. (Pfizer). Pfizer has agreed to pay $59,746,277.54, plus interest, to resolve allegations that Biohaven knowingly submitted or caused false claims to be submitted to Medicaid and other federal health care programs by paying kickbacks, including cash, lavish meals, and honoraria payments, to health care providers to induce them to prescribe Nurtec ODT (Nurtec), a prescription medication for the treatment of migraine headaches. As part of the settlement, the State of Michigan will receive $155,930.53 in restitution and other recoveries.
“Michigan taxpayers shouldn’t have to bear the cost of fraudulent corporate practices that prioritize profits over patient health care,” Nessel said. “My office remains committed to working with federal partners and attorneys general across the county to hold companies accountable for their misconduct.”
The settlement resolves allegations that between March 1, 2020, and Sept. 30, 2022, Biohaven paid kickbacks to providers to present at speaker programs designed to promote Nurtec to Medicaid and other federal health care beneficiaries, in violation of the Anti-Kickback Statute (AKS), 42 U.S.C. § 1320a- 7b(b). Some providers were allegedly paid tens of thousands of dollars, sometimes exceeding $100,000, for these programs.
In numerous instances, speaker events were allegedly attended by the providers’ spouses, family members, and friends, who had no educational need to attend. Also, certain providers allegedly attended multiple programs on the same topic, and received expensive meals and drinks paid for by Biohaven, without obtaining any meaningful educational benefit.
The case was initiated by a whistleblower, a former employee of Biohaven, who will receive a portion of the settlement. A National Association of Medicaid Fraud Control Units (NAMFCU) Team investigated the allegations in conjunction with the Department of Justice and the United States Attorney’s Office in New York. The NAMFCU Team included representatives from the Offices of the Attorneys General for the states of Florida, New York, California, and Virginia.
The Attorney General’s Health Care Fraud Division (HCFD) handled this case for the Department. The HCFD is the federally certified Medicaid Fraud Control Unit for Michigan, and it receives 75 per cent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $5,703,460.00 for the fiscal year 2025. The remaining 25 per cent, totaling $1,901,152.00, is funded by the State of Michigan.
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