Gilead Sciences, Inc. to Pay $202 Million to Resolve Kickback Allegations on HIV/AIDs Drugs

September 22, 2025

(Anchorage, AK) - The State of Alaska has joined with other states and the federal government to reach an agreement with Gilead Sciences, Inc. ("Gilead") to settle allegations that the company paid kickbacks to providers to improperly promote its HIV drugs: Stribild®, Genvoya®, Complera®, Odefsey®, Descovy®, and Biktarvy® (the "Gilead HIV Drugs").

"Kickback schemes drain Medicaid dollars and put patients at risk," said Alaska Attorney General Stephen Cox. "Our Medicaid Fraud Control Unit will hold accountable anyone who abuses these programs, and I know from my DOJ experience that the best results come when states and the federal government work together. We'll continue partnering with our federal colleagues to go after fraud against both state and federal programs."

Gilead, a California-based large pharmaceutical company, which among other things, developed, manufactured, and sold drugs for the treatment of infectious diseases, including HIV/AIDS, will pay the states and the federal government $202 million. $49,045,600.00 of the payment will go to Medicaid programs to resolve civil allegations that Gilead's unlawful promotion of the Gilead HIV Drugs caused false claims to be submitted to the government health care programs. Of that amount, Alaska will receive $20,203.14 in restitution and other recoveries.

Specifically, the settlement will resolve allegations that from Jan. 1, 2011, through Nov. 17, 2017, Gilead offered and paid remuneration in the form of honoraria payments, meals, and travel expenses to healthcare practitioners who spoke at or attended Gilead speaker events. These benefits were alleged to have been provided to practitioners to induce them to prescribe the Gilead HIV Drugs in violation of the Anti-Kickback Statute, 42 U.S.C. § 1320a-7b(b). These unlawful benefits caused false claims for the Gilead HIV Drugs to be submitted to, and paid by, the State's Medicaid program in violation of the State's false claims act. As part of the settlement, Gilead also made extensive factual admissions regarding its conduct.

This settlement arises from a qui tam action originally filed in 2016, and then amended in 2020 and again in 2021. United States of America et al., ex rel. Dr. Paul Bellman v. Gilead Sciences, Inc., Civil Action No. 16-CV-6228 (PAE) was filed in the United States District Court for the Southern District of New York under the federal False Claims Act and various state false claims statutes.

A National Association of Medicaid Fraud Control Units (NAMFCU) Team participated in the investigation and conducted the settlement negotiations with Gilead on behalf of the states. The Team included representatives from the Offices of the Attorneys General for the states of California, Indiana, New York, North Carolina, and Virginia.

*The Alaska MFCU is part of the Alaska Department of Law and is located in Anchorage. It is responsible for investigating and prosecuting Medicaid fraud, abuse, neglect, and financial exploitation of patients in any facility that accepts Medicaid funds. The unit is 75% federally funded by the U.S. Department of Health and Human Services under a grant award totaling $1,984,725.66 for FY 2025. The remaining 25%, totaling $661,575.22, is funded by the State of Alaska. Citizens with information about suspected medical assistance fraud, patient abuse or neglect are encouraged to use the Alaska MFCU online complaint form or to contact the unit at (907) 269-6279.

CONTACT: Heather Nobrega, Director, Medicaid Fraud Control Unit at (907) 269-6413.

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Department Media Contacts: Communications Director Patty Sullivan at [email protected] or (907) 269-6368. Information Officer Sam Curtis at [email protected] or (907) 269-6269.