The United States Attorney for the Southern District of New York, Jay Clayton, together with several high-ranking officials from the Department of Health and Human Services, announced a $202 million settlement with pharmaceutical company Gilead Sciences. The lawsuit accused the company of using its speaker programs to offer kickbacks to doctors, encouraging them to prescribe its HIV drugs.
The settlement, approved by U.S. District Judge Paul A. Engelmayer, includes a payment of $176,927,889.28 to the U.S., with the remainder distributed to various states. The government alleged that Gilead violated the Anti-Kickback Statute by paying healthcare providers with honoraria, meals, and travel expenses, influencing them to prescribe Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy. Such actions led to false claims being submitted to federal healthcare programs, contravening the False Claims Act.
U.S. Attorney Jay Clayton commented, “For years, Gilead unlawfully sought to increase sales of its HIV drugs, by using its speaker programs to funnel kickbacks to doctors. [...] The message is clear, companies that illegally drain taxpayer dollars from federal healthcare programs will be held accountable.”
Naomi Gruchacz of HHS-OIG noted, “This impactful settlement is the result of collaborative work by law enforcement partners, revealing Gilead’s unlawful practice of providing kickbacks to physicians under the guise of its HIV educational speaker programs.”
Christopher M. Silvestro from DCIS stated, “Protecting TRICARE, the healthcare system for Service members and their families, and investigating kickback schemes are priorities for DCIS.”
FBI's Christopher G. Raia added, “This settlement ensures Gilead is held accountable for their illicit use of perks and kickbacks to entice doctors to prescribe the company’s medicine. [...] The FBI will continue to investigate and stop healthcare companies attempting to benefit from deceitful and illegal practices.”
The complaint outlined that during the period from January 2011 to November 2017, Gilead's HIV Speaker Programs hosted events to drive up sales of its drugs, offering substantial compensation and travel incentives to prescribing physicians. Many of these programs were held at high-end restaurants or travel destinations, with repeated invitations extended to healthcare providers.
In response to the allegations, Gilead acknowledged its conduct during the relevant period. The government also joined a whistleblower lawsuit under the False Claims Act, which led to the settlement.
The case was managed by the Office's Civil Frauds Unit, with Assistant U.S. Attorneys Jacob M. Bergman, Allison M. Rovner, Rebecca S. Tinio, and Lucas Issacharoff spearheading the investigation and resolution process.