Gilead Sciences Fined $202M for Illegal HIV Drug Kickbacks

New York – In a stunning victory against pharmaceutical malfeasance, New York Attorney General Letitia James has secured over $200 million from Gilead Sciences Inc. for an illegal kickback scheme aimed at promoting its HIV medications.

The AG’s office revealed that Gilead violated federal law by offering incentives such as awards, meals, and travel expenses to healthcare providers in exchange for prescribing their drugs. The results were millions of dollars in false claims submitted to government health care programs, including New York’s Medicaid program.

Under the settlement in principle, approved by the U.S. District Court for the Southern District of New York, Gilead will pay $49 million to Medicaid programs nationwide, with New York receiving a significant $6.6 million share. The remainder will be distributed among Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP).

“When pharmaceutical companies put profits before patients, New Yorkers suffer,” stated Attorney General James. “Gilead undermined our health care system with illegal kickback payments, and now they are being held accountable.”

The AG’s investigation exposed Gilead’s systematic violations of federal anti-kickback laws from January 2011 to November 2017. The company paid high-volume prescribers tens to hundreds of thousands of dollars to act as “HIV Speakers,” covered travel expenses to exotic locations, and hosted lavish dinners at high-end restaurants, including Del Posto, Asiate, and Palma in New York.

Attorney General James highlighted examples where the same group of doctors repeatedly attended HIV Speaker Programs, some within 90 days of speaking on the same topic. The AG’s office thanked the U.S. Attorney’s Office for the Southern District of New York for its partnership in this landmark case.