DoJ Pfizer $60mn False Claims Penalty

Updated on: Feb 14, 2025

Latest Event


  • Feb. 2025 MS AG Medicare Settlement
  • On Feb. 12, 2025, MS AG jointed settlement with 37 other States and Puerto Rico in order to settle the kickback allegations against Biohaven and Medicare false claims.
  • State of Mississippi will receive $162,204.59 in restitution and other recoveries.

On Jan. 24, DoJ settled with Pfizer re improper physician payments.

  • DoJ reported Pfizer Inc., on behalf of subsidiary Biohaven Pharmaceutical Holding Co. (Biohaven), agreed to pay $59,746,277 to resolve false claim submissions to Medicare.
  • Allegations
  • Paid kickbacks to health care providers to induce prescriptions of the drug Nurtec ODT.
  • Biohaven paid improper remuneration, including for speaker honoraria and meals at high end restaurants, to health care professionals to induce them to prescribe Nurtec.
  • Prescribers who attended multiple programs on the same topic received no educational benefit from attending repeat programs and attended by family members, friends.
  • Conduct persisted until Pfizer acquired Biohaven, terminated Nurtec speaker programs.
  • Settlement resolved claims brought under the qui tam/whistleblower provisions of the False claims act (31 USC 3729 - 3733) by Patrica Frattasio, former Biohaven sales rep.
  • Enforcement
  • Approximately $50.2mn of settlement constitutes the federal portion of the recovery and approximately $9.5mn constitutes a recovery for State Medicaid programs.
  • Frattasio will receive approximately $8.4mn as her share of case's federal recovery.
  • Jan. 28, 2025 NEB LEG Joining Settlement
  • On Jan. 28, 2025, NEB LEG reported NEB joined the US, 37 other States, Puerto Rico in settling kickback allegations against Biohaven to resolve false claims to Medicare.
  • Jan. 31, 2025 COL AG Joining Settlement
  • On Jan. 31, 2025, COL AG reported COL joined the US, 38 other States, and territories in settling kickback allegations against Biohaven to resolve false claims to Medicare.
  • Pfizer to pay $59mn, including a payment of $156,253 to Colorado in restitution.
  • Feb. 3, 2025 MCH AG, CAL AG Joining Settlement
  • On Feb. 3, 2025, MCH AG, CAL AG reported States joined US, States and Puerto Rico in settling kickback allegations against Biohaven, to resolve false claims to Medicare.
  • As part of settlement, MCH will receive $155,930.53 in restitution, other recoveries.
  • California will receive $413,776 for its share of losses to California’s Medicaid program.
  • Feb. 4, 2025 CT AG Joining Settlement
  • On Feb. 4, 2025, CT AG reported CT joined the US, other States, and Puerto Rico in settling kickback allegations against Biohaven to resolve false claims to Medicare.
  • As part of the settlement, CT will receive $64,233 in restitution and other recoveries.
  • Feb. 5, 2025 FLA AG Joining Settlement
  • On Feb. 5, 2025, FLA AG reported FLA joined the US, other States, and Puerto Rico in settling kickback allegations against Biohaven to resolve false claims to Medicare.
  • As part of action, Pfizer agreed to pay $2,300,449 to the Florida Medicaid program.
  • Feb. 2025 MS AG Medicare Settlement
  • On Feb. 12, 2025, MS AG jointed settlement with 37 other States and Puerto Rico in order to settle the kickback allegations against Biohaven and Medicare false claims.
  • State of Mississippi will receive $162,204.59 in restitution and other recoveries.
Regulators
CAL AG; COL AG; CT AG; DoJ; FLA AG; MCH AG; MS AG; NEB LEG
Entity Types
Corp; Ins
Reference
MS AG: PR, 2/12/2025; FLA AG: PR, 2/5/2025; CT AG: PR, 2/4/2025; CAL AG: PR, 2/3/2025; MCH AG: PR, 2/3/2025; COL AG: PR, LR, 1/31/2025; NEB LEG: PR, 1/28/2025; DoJ: PR 25-111, 1/24/2025; Citation: 31 USC 3729;
Functions
Anti-Bribery; Claims/Accelerated Benefits; Compliance; Financial; Fraud; Legal
Countries
United States of America
Category
Central Government; State Government
State
California; Colorado; Connecticut; Florida; Michigan; Mississippi; Nebraska
Products
Corporate; Insurance; Medicare
Rule Type
Enforcement
Regions
Am
Rule Date
Jan 24, 2025
Effective Date
Feb 12, 2025
Rule ID
241529
Linked to
N/A
Reg. Last Update
Feb 12, 2025
Report Section
AML & Enforcement