Attorney General Ford Helps Secure Over $200 Million from Gilead Sciences for Paying Illegal Kickbacks

Nevada Will Receive Approximately $442,381.44 from Multistate Settlement in Principle

Carson City, NV – Today, Nevada Attorney General Aaron D. Ford today joined a coalition of 48 other attorneys general in securing $202 million from Gilead Sciences, Inc. (Gilead), for running an illegal kickback scheme to promote its HIV medications. Gilead violated federal law by illegally providing incentives – including awards, meals, and travel expenses – to health care providers to prescribe Gilead’s medications, resulting in millions of dollars of false claims submitted to government health care programs, including New York’s Medicaid program. The settlement in principle, reached in coordination with the U.S. Department of Justice and approved by the U.S. District Court for the Southern District of New York, provides $49 million for Medicaid programs nationwide, including approximately $442,381.44 for Nevada, with the remainder going to Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP).

"Gilead's illegal kickback scheme undermined the integrity of medical decision-making and cost taxpayers millions of dollars,” said AG Ford. The nearly half-million dollars Nevada is expected to receive from this settlement will help support our Medicaid program and ensure resources go where they belong – toward providing quality healthcare to Nevadans who need it most.”

From January 2011 to November 2017, Gilead violated federal anti-kickback laws by providing gifts to health care providers who attended and spoke at promotional speaker programs for Gilead’s HIV drugs: Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy. Gilead paid high-volume prescribers tens to hundreds of thousands of dollars to present as “HIV Speakers.” The company also covered travel expenses for speakers, including those traveling long distances and to attractive destinations, such as Hawaii, Miami, and New Orleans, and hosted dinners at high-end restaurants.

Gilead’s internal compliance mechanisms failed to halt these violations. The company maintained policies and procedures that failed to prevent its sales representatives from improperly offering incentives to induce prescriptions.

Joining Attorney General Ford in securing settlements with Gilead are the attorneys general of Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, New Hampshire, New Jersey, New Mexico, New York, North Carolina, North Dakota, Ohio, Oklahoma, Oregon, Pennsylvania, Rhode Island, South Carolina, South Dakota, Tennessee, Utah, Vermont, Virginia, Washington, West Virginia, Wisconsin, Wyoming, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands.

The MFCU investigates and prosecutes financial fraud by those providing healthcare services or goods to Medicaid patients. The MFCU also investigates and prosecutes instances of elder abuse or neglect. The Nevada MFCU receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award. The remaining 25 percent is funded by the State of Nevada, MFCU. Persons convicted of Medicaid fraud may also be administratively excluded from future Medicaid and Medicare participation. Anyone wishing to report suspicions regarding any of these concerns may contact the MFCU at 702-486-3420 or 775-684-1100.

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