Michigan Attorney General joins national effort to hold Biohaven accountable for fraudulent Medicaid claims.
Michigan Recovers Funds in Pfizer Subsidiary Kickback Settlement
LANSING, Mich. – Michigan Attorney General Dana Nessel has announced a $59.7 million settlement involving Biohaven Pharmaceutical Holding Company Ltd. (Biohaven), a subsidiary of Pfizer, Inc.. The lawsuit, joined by 37 states, Puerto Rico, and the U.S. Department of Justice, alleged that Biohaven paid illegal kickbacks to health care providers to promote Nurtec ODT, a migraine medication.
Under the settlement, Michigan will receive $155,930.53 in restitution. The lawsuit accused Biohaven of providing cash payments, lavish meals, and honoraria fees to doctors in exchange for prescribing Nurtec, violating the Anti-Kickback Statute (AKS).
Whistleblower Uncovers Fraudulent Marketing Practices
The case was initiated by a whistleblower, a former Biohaven employee, who will receive a portion of the settlement. The allegations spanned from March 1, 2020, to September 30, 2022, during which Biohaven allegedly sponsored speaker programs that functioned as marketing events rather than genuine educational opportunities.
These events were allegedly attended by providers’ spouses, family members, and friends who had no medical need to be present. Some providers reportedly attended multiple events on the same topic, enjoying expensive meals and drinks at Biohaven’s expense.
Nessel Condemns Corporate Fraud, Pledges Accountability
“Michigan taxpayers shouldn’t have to bear the cost of fraudulent corporate practices that prioritize profits over patient health care,” said Attorney General Nessel. “My office remains committed to working with federal partners and attorneys general across the country to hold companies accountable for their misconduct.”
Nessel emphasized that corporate accountability is key to protecting both taxpayers and the integrity of Michigan’s Medicaid program.
National and State Investigators Collaborate on Case
A National Association of Medicaid Fraud Control Units (NAMFCU) Team investigated the allegations alongside the Department of Justice and the United States Attorney’s Office in New York. The team included representatives from the Attorneys General Offices of Florida, New York, California, and Virginia.
Michigan’s Health Care Fraud Division (HCFD), which served as the Medicaid Fraud Control Unit for the state, played a crucial role in the case. The HCFD is federally funded, receiving 75% of its funding from the U.S. Department of Health and Human Services through a $5.7 million grant. The remaining 25%, totaling $1.9 million, is provided by the State of Michigan.
A Step Toward Transparency in Health Care
This settlement marks another victory in Nessel’s efforts to combat fraud in the health care industry. With the resolution of this case, Michigan taxpayers and Medicaid beneficiaries can expect greater transparency and accountability from pharmaceutical companies operating within the state.
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