New York Attorney General Letitia James has led a coalition of 48 attorneys general to secure a $202 million settlement from Gilead Sciences, Inc. The pharmaceutical company was found to have engaged in an illegal kickback scheme promoting its HIV medications, resulting in false claims submitted to government health care programs.
The settlement involves $49 million allocated for Medicaid programs nationwide, including $6.6 million specifically for New York. The remaining funds will be distributed among Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP). This agreement was coordinated with the U.S. Department of Justice and approved by the U.S. District Court for the Southern District of New York.
Attorney General James stated, “When pharmaceutical companies put profits before patients, New Yorkers suffer.” She emphasized the importance of trust in doctors’ recommendations and holding companies accountable for undermining healthcare systems through illegal activities.
From January 2011 to November 2017, Gilead violated federal anti-kickback laws by offering incentives such as gifts and travel expenses to healthcare providers who attended or spoke at promotional events for their HIV drugs. These actions included high-volume prescribers receiving significant payments and covering travel expenses to desirable locations.
Despite internal compliance measures, Gilead failed to prevent these violations. Sales representatives continued offering improper incentives to encourage prescriptions. Instances included a nurse practitioner attending multiple programs on repeated topics and groups of doctors frequently participating in events together.
Attorney General James expressed gratitude towards the U.S. Attorney’s Office for the Southern District of New York for their assistance in this case. The National Association of Medicaid Fraud Control Units (NAMFCU) also played a role in investigating and negotiating settlements on behalf of various states.
This matter was handled by Assistant Attorneys General Jill D. Brenner and Nathan Shi under supervision from key figures within New York’s Medicaid Fraud Control Unit.
New York MFCU’s funding totals $70,502,916 for FY 2025, with 75 percent provided by a grant from the U.S. Department of Health and Human Services and 25 percent funded by New York State.
