Attorney General Rob Bonta announced a settlement involving Pfizer-owned Biohaven Pharmaceutical Holding Company over allegations of false claims submitted to Medicaid and other government healthcare programs. The settlement addresses accusations that Biohaven engaged in a kickback scheme from 2020 to 2022, offering cash and extravagant gifts to healthcare providers to encourage the prescription of their migraine medication, Nurtec.
Pfizer will pay nearly $60 million on behalf of Biohaven to settle these claims, with the State of California receiving $413,776 for losses incurred by its Medicaid program, Medi-Cal. Attorney General Bonta emphasized the importance of prioritizing patient interests, stating: “The best interests of patients must always come first. It is up to us, along with our state and federal partners, to keep violations like those alleged against Biohaven in check. Today’s settlement returns critical funding to our communities and programs like Medicaid that keep them healthy.”
The payment from Pfizer amounts to $59,746,277 plus interest and will be distributed among the federal government and several states. The allegations claim that Biohaven breached the Anti-Kickback Statute by providing cash payments, lavish meals, and honoraria as incentives for healthcare professionals.
The California Department of Justice’s Division of Medi-Cal Fraud and Elder Abuse (DMFEA) played a role in this case. The DMFEA investigates fraud within the Medi-Cal program and elder abuse cases. Their work is supported by coordination with governmental agencies and whistleblowers who report abuse or fraud.
Funding for the DMFEA comes primarily from the U.S. Department of Health and Human Services through a grant totaling $69,244,976 for Federal fiscal year 2025. The remaining funds are provided by the State of California.