California Attorney General Rob Bonta, along with 48 other attorneys general, has secured a $202 million settlement from Gilead Sciences, Inc. for allegedly running an illegal kickback scheme to promote its HIV medications. The settlement addresses claims that Gilead provided incentives such as awards, meals, and travel expenses to healthcare providers to prescribe its medications, resulting in false claims submitted to government healthcare programs like Medi-Cal.
Attorney General Bonta stated, “The best interests of patients must always come first. At this time of unprecedented funding cuts to Medicaid, it is particularly important to protect the program from illegal kick-back schemes that harm the program and patients alike. Today’s settlement returns critical funding to our communities and programs like Medicaid that keep them healthy.”
From January 2011 to November 2017, Gilead allegedly violated federal anti-kickback laws by providing gifts to healthcare providers who attended and spoke at promotional speaker programs for its HIV drugs. These included Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy. High-volume prescribers were reportedly paid significant sums as “HIV Speakers,” with travel expenses covered for events in locations such as Hawaii and Miami.
Gilead’s internal compliance mechanisms failed to prevent these violations. The company’s policies did not stop sales representatives from offering improper incentives.
Joining Attorney General Bonta are attorneys general from numerous states including Alabama, Alaska, Arizona, Arkansas, Colorado among others.
The Division of Medi-Cal Fraud and Elder Abuse receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant totaling $69 million for fiscal year 2025. The remaining funds are provided by the State of California.
