Texas Attorney General Ken Paxton
AUSTIN -- Texas Attorney General Ken Paxton has secured a multi-million dollar 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.
Under the settlement, the company will pay $45 million to the state, according to the Office of the Attorney General.
The agreement states that the settlement is a result of the parties compromise and is not an admission of wrongdoing.
Paxton sued Gilead in October 2023 for allegedly engaging in unlawful marketing practices that were designed to incentivize medical providers to prescribe its drugs over competitors’ medications.
According to the OAG, the company offered illegal incentives to medical providers in Texas, including “free nurses” and reimbursement support services. In many cases, these prescriptions were covered by Medicaid, resulting in millions of dollars in claims submitted to Texas Medicaid that were tainted by Gilead’s illegal inducements.
The alleged conduct violates the Texas Health Care Program Fraud Prevention Act. Now, under the settlement, Gilead will pay $45 million to Texas to repay Texans for the abuse of taxpayer dollars.
“Doctors ought to prescribe medication in accordance with what is in the best interest of the patient,” Paxton said. “When Big Pharma attempts to bribe providers by offering kickbacks, the integrity of our healthcare system is jeopardized. Gilead will now repay $45 million to Texas.
“Let this be a warning to every Big Pharma company: If you jeopardize the health of Texans or abuse taxpayer dollars, I will come after you and you will pay.”
The OAG says the settlement builds upon Paxton’s ongoing efforts to combat Medicaid fraud and protect Texas taxpayers.
Previously, the attorney general secured a settlement with AstraZeneca to hold the company accountable for running a similar illegal kickback scheme.
The OAG has also taken legal action against Eli Lilly, Sanofi-Aventis, and other major pharmaceutical companies to stop the alleged fraud and abuse.
