Gilead Sciences Settles $202 Million Fraud Case Over Kickbacks

Gilead Sciences has agreed to pay $202 million to resolve a civil fraud lawsuit alleging that it paid kickbacks—including honoraria, meals, and travel expenses—to doctors to induce them to prescribe its HIV drugs. The settlement follows claims that these actions violated the federal Anti-Kickback Statute and the False Claims Act by causing false claims to be submitted to and paid by federal healthcare programs. Of the total settlement, about $177 million will go to the U.S. government and the remainder to various states. The agreement also includes substantial factual admissions by Gilead regarding its conduct. U.S. Attorney Jay Clayton stated that Gilead unlawfully sought to increase sales of its HIV drugs through these practices and has now taken responsibility by agreeing to the financial penalty. The settlement was approved by U.S. District Judge Paul A. Engelmayer.