Gilead Agrees $45M Settlement in Texas Over Alleged Kickback Scheme

Gilead Agrees M Settlement in Texas Over Alleged Kickback Scheme

Gilead Sciences agreed to pay $45 million to resolve allegations that it provided improper inducements that influenced prescriptions covered by the Texas Medicaid program. The payment, announced as a settlement with state authorities, follows claims that certain promotional and patient-support activities improperly steered government-paid prescriptions toward the companys products.

The state pursued the matter in partnership with a whistleblower who filed a separate lawsuit asserting that Gilead Sciences arranged payments to a third-party firm to employ registered nurses whose outreach recommended the companys drugs. The complaint also alleged that the company provided no-cost support services to clinicians, and that those services led to false claims being submitted to government healthcare programs. The legal action was advanced by the office of the Texas Attorney General alongside the relators suit.

Those allegations echo whistleblower litigation first brought nearly a decade ago by Health Choice Advocates and affiliated entities, which accused multiple drugmakers of using third-party contractors to deploy nurses by telephone and sometimes in patients homes to secure prescription refills. Those earlier suits drew attention to the role of outside contractors and patient-support programs in the marketing strategies of pharmaceutical companies, prompting increased regulatory scrutiny.

The $45 million agreement settles the states claims without introducing new public findings of liability in court proceedings. It represents the most recent resolution in a series of enforcement efforts by state authorities examining how manufacturer-funded services and third-party vendors intersect with prescriptions paid for by public programs. Regulators and healthcare stakeholders are continuing to monitor arrangements that connect drugmakers, intermediaries and prescribers where government-funded coverage is involved.