Financial Crime Weekly: Pfizer Pays Nearly $60 Million To Resolve False Claims Allegations, SEC Creates Crypto Task Force

Pfizer Pays Nearly $60 Million To Resolve False Claims Allegations

The U.S. Department of Justice announced on Friday that Pfizer Inc. PFE, on behalf of its subsidiary Biohaven Ltd. BHVN (Biohaven), agreed to pay $59,746,277 to resolve allegations that Biohaven knowingly caused the submission of false claims to Medicare by paying kickbacks to health care providers to induce prescriptions of its drug Nurtec ODT.

The DOJ alleges that from March 1, 2020, through Sept. 30, 2022, Biohaven paid health care professionals, in the form of paid speaking appearances and expensive meals, to induce them to prescribe the medication which violates the anti-kickback statute.

"Patients deserve to know that their doctor is prescribing medications based on their doctor's medical judgment, and not as a result of financial incentives from pharmaceutical companies," said U.S. Attorney Trini E. Ross for the Western District of New York.

"This settlement reflects our commitment to hold those who violate the laws accountable, regardless of their status or prestige," Ross added.

SEC Creates New Crypto Task Force

Last Tuesday, the Securities and Exchange Commission announced the creation of a crypto task force, led by Commissioner Hester Peirce and dedicated to the development of a clear and comprehensive regulatory framework for crypto assets.

The SEC said the current legal confusion in the crypto industry has led to "an environment hostile to innovation and conducive to fraud." The task force's focus will be to "draw clear regulatory lines, provide realistic paths to registration, craft sensible disclosure frameworks, and deploy enforcement resources judiciously," the SEC said.

"This undertaking will take time, patience, and much hard work. It will succeed only if the Task Force has input from a wide range of investors, industry participants, academics, and other interested parties. We look forward to working hand-in-hand with the public to foster a regulatory environment that protects investors, facilitates capital formation, fosters market integrity, and supports innovation," stated Commissioner Peirce.

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