NEW YORK, April 29 (Reuters) - Gilead Sciences ( GILD )
agreed to pay $202 million to settle a whistleblower lawsuit
accusing the drugmaker of civil fraud for paying kickbacks to
doctors who agreed to prescribe its HIV drugs.
The settlement announced on Tuesday by U.S. Attorney Jay
Clayton in Manhattan resolved charges that Gilead violated the
federal False Claims Act by defrauding Medicare, Medicaid and
other programs into paying for drugs prescribed by doctors who
spoke at and attended Gilead's promotional speaker programs.
Investigators said that from 2011 to 2017, Gilead
provided more than $23.7 million of speaker honoraria, paid for
lavish meals at high-end restaurants, and covered travel costs,
including to "desirable" locations such as Hawaii and New
Orleans, for hundreds of healthcare providers.
According to settlement papers, some kickback recipients
repeatedly attended programs on the same topic, including a
group of 10 Manhattan doctors who spoke at or attended together
approximately 384 dinners.
The HIV drugs included Biktarvy, Complera, Descovy,
Genvoya, Odefsey and Stribild.
"With this settlement, Gilead has taken responsibility
for its conduct," Clayton said in a statement. "The message is
clear, companies that illegally drain taxpayer dollars from
federal healthcare programs will be held accountable."
Gilead said it settled to avoid the cost and distraction
of potential litigation. The Foster City, California-based
company had
set aside money
for the settlement in last year's fourth quarter.
The False Claims Act lets whistleblowers sue on behalf
of governments and share in recoveries.
The Gilead case was originally filed in 2016 by Paul
Bellman, a doctor who treats patients diagnosed with HIV/AIDS.
Gilead's HIV drug sales totaled $19.61 billion in 2024,
up 8% from a year earlier.