Attorney General Bonta Announces Nearly $60 Million Settlement Against Pfizer-Owned Pharmaceutical Holding Company, Biohaven

OAKLAND —Attorney General Bonta today annnounced a nationwide settlement against Pfizer-owned Biohaven Pharmaceutical Holding Company for submitting false claims to the Medicaid program and other government healthcare programs. The settlement addresses claims that Biohaven participated in a kickback scheme from 2020 to 2022, where they provided cash and extravagant gifts to healthcare providers in return for prescribing their medication, Nurtec. As part of today's settlement, Pfizer has agreed to pay, on behalf of Biohaven, a total of nearly $60 million to resolve federal and state violations, most of which resulted in losses to the federal Medicare program. The State of California will receive $413,776 for its share of losses to California’s Medicaid program, Medi-Cal.

“The best interests of patients must always come first,” said Attorney General Bonta. “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.”

Pfizer has agreed to pay $59,746,277, plus interest, on behalf of Biohaven to resolve allegations that Biohaven engaged in unlawful kickback practices to encourage providers to prescribe Nurtec, a prescription medication designed for the treatment of migraine headaches, to patients who use Medicaid for insurance. That payment will be shared by the federal government and several states, including California. The claims assert that kickbacks were provided to healthcare professionals in the form of cash payments, lavish meals, and honoraria, thereby breaching the Anti-Kickback Statute. 

The California Department of Justice’s DMFEA protects Californians by investigating and prosecuting those who defraud the Medi-Cal program as well as those who commit elder abuse. These settlements are made possible only through the coordination and collaboration of governmental agencies, as well as the critical help from whistleblowers who report incidences of abuse or Medi-Cal fraud at oag.ca.gov/dmfea/reporting. 

The Division of Medi-Cal Fraud and Elder Abuse receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $69,244,976 for Federal fiscal year (FY) 2025. The remaining 25 percent is funded by the State of California. FY 2025 is from October 1, 2024 through September 30, 2025. 

A copy of the settlement can be found here.