Pfizer Pays $60 Million in Case Started by Whistleblower

When a multinational corporation is engaging in impropriety involving government funds, sometimes one honest employee can call out the misconduct and gain a substantial benefit by doing so. This is exactly what happened in a case brought against one of the world’s largest pharmaceutical companies. 

Pfizer, on behalf of its wholly-owned subsidiary Biohaven Pharmaceutical Holding Company Ltd., agreed to pay approximately $60 million to settle a case alleging that Biohaven violated the False Claims Act by sending fraudulent submissions to Medicare and other federal health care programs. The investigation was promoted by a whistleblower who had information that the company provided kickbacks to doctors so that they would be persuaded to prescribe Nurtec ODT to patients. This medication, manufactured by Biohaven, was created to relieve migraine headaches. 

According to the Department of Justice, these payments violated federal anti-kickback statutes, which prohibit offering or paying remuneration to induce referrals or prescriptions for items or services covered by federal health care programs. Such practices undermine the integrity of the health care system by prioritizing financial incentives over patient well-being. The expense associated with pharmaceuticals means that illicit practices could lead to harm in the millions, or even billions, of dollars.   

In this case, Patricia Frattasio, a former Biohaven sales representative, was the whistleblower who filed the qui tam lawsuit captioned U.S. ex rel. Patricia Frattasio v. Biohaven Pharmaceutical Holding Company Ltd. By doing so, she alerted the federal government to a major case of Medicare fraud and became eligible to secure a portion of Pfizer’s payment to the government. As the qui tam plaintiff’s share generally is set between 15 and 30 percent of the total recovery, Frattasio will receive approximately $8.4 million. 

If you work for a pharmaceutical company or another type of organization is involved in federal health care programs, it is essential to stay aware of any activity that might violate the law. Kardell Law Group firm is here to provide guidance to potential whistleblowers and deliver comprehensive legal support if a qui tam lawsuit is warranted by the facts. Contact us today to learn more about how we can assist you.