California Attorney General Rob Bonta, along with 48 other attorneys general, has secured a $202 million settlement from Gilead Sciences, Inc. The company was accused of running an illegal kickback scheme to promote its HIV medications. Gilead allegedly provided incentives such as awards, meals, and travel expenses to healthcare providers to prescribe its medications. This resulted in false claims being submitted to government health care programs like Medi-Cal.
The settlement, coordinated with the U.S. Department of Justice and approved by the U.S. District Court for the Southern District of New York, allocates $49 million for Medicaid programs nationwide. California will receive over $4 million from this amount.
Attorney General Bonta emphasized the importance of prioritizing patients’ best interests and protecting Medicaid from harmful schemes. He stated that the settlement returns critical funding to communities and programs that support public health.
From January 2011 to November 2017, Gilead allegedly violated federal anti-kickback laws by providing gifts to healthcare providers who participated in promotional speaker programs for its HIV drugs. These drugs include Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy. High-volume prescribers were paid significant amounts to act as “HIV Speakers,” and their travel expenses were covered for events held in attractive destinations.
Gilead’s internal compliance mechanisms failed to prevent these violations. The company’s policies did not stop sales representatives from offering improper incentives.
In addition to California’s Attorney General Bonta, attorneys general from numerous states and territories participated in securing the settlements with Gilead.
The Division of Medi-Cal Fraud and Elder Abuse receives a significant portion of its funding from the U.S. Department of Health and Human Services under a grant award totaling over $69 million for Federal fiscal year 2025. The remaining funding is provided by the State of California.
