New York Attorney General Letitia James, along with a coalition of 48 other attorneys general, has secured a $202 million settlement from Gilead Sciences, Inc. The pharmaceutical company was found to have run an illegal kickback scheme promoting its HIV medications. The scheme involved providing incentives such as awards, meals, and travel expenses to healthcare providers to prescribe Gilead’s drugs. This led to false claims being submitted to government healthcare programs, including New York’s Medicaid program.
The settlement includes $49 million for Medicaid programs nationwide, with New York receiving $6.6 million. The rest will be allocated to Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP). “When pharmaceutical companies put profits before patients, New Yorkers suffer,” said Attorney General James. She emphasized the importance of patient trust in doctors’ recommendations and stated that Gilead’s actions undermined the healthcare system.
Between January 2011 and November 2017, Gilead violated federal anti-kickback laws by offering gifts to healthcare providers who participated in promotional speaker programs for its HIV drugs. These included Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy. High-volume prescribers were paid significant sums as “HIV Speakers,” and travel expenses were covered for speakers traveling long distances or to attractive destinations like Hawaii and Miami.
Gilead’s compliance mechanisms failed to prevent these violations despite having policies in place. In one instance highlighted by the investigation, a nurse practitioner attended multiple dinner programs on the same topic within short periods and often brought a non-prescribing sibling along.
Attorney General James expressed gratitude towards the U.S. Attorney’s Office for their partnership in this case. The National Association of Medicaid Fraud Control Units (NAMFCU) also played a role in investigating and negotiating the settlement with Gilead on behalf of various states.
This matter was handled by Assistant Attorneys General Jill D. Brenner and Nathan Shi under the supervision of several senior officials within New York’s legal framework.
New York MFCU’s funding for FY 2025 totals $70,502,916; 75 percent comes from a U.S. Department of Health and Human Services grant while the remainder is funded by New York State.
