Texas Wins $45 Million Gilead Settlement Over ‘Kickback Scheme’

Texas has negotiated a $45 million settlement with Gilead Sciences to resolve claims that the company engaged in an illegal kickback scheme that improperly influenced prescriptions paid for by Texas Medicaid.

The settlement follows a 10/2023 state lawsuit alleging that Gilead engaged in “unlawful marketing practices that were designed to incentivize medical providers to prescribe its drugs over competitors’ medications,” according to a release. “The company offered illegal incentives to medical providers in Texas, including ‘free nurses’ and reimbursement support services.”

Previously, Texas reached a settlement with AstraZeneca over an alleged and similar kickback scheme, according to the release. It has also taken legal action against Eli Lilly, Sanofi-Aventis, and other major pharmaceutical companies to “stop fraud and abuse,” it adds.