NC AG Jeff Jackson: Over $200M from Gilead Sciences Kickbacks to Doctors

Raleigh--  July 24, 2025: Gilead Sciences will pay $202 million to settle allegations that it paid kickbacks to physicians in exchange for promoting its HIV drugs, which led to millions of dollars in fraudulent claims being filed to government health care programs, including North Carolina's Medicaid program, according to Attorney General Jeff Jackson.  

The settlement in principle, which resulted from a qui tam case and was reached in collaboration with the U.S. Department of Justice and 48 other states, will provide $760,106 to North Carolina's Medicaid program.

“Doctors are supposed to prescribe the medications that are best for patients – not the medication they get the biggest prize for prescribing,” said Attorney General Jeff Jackson. “This pharma company put profits over patients. We won’t let that happen in North Carolina.” 

From January 2011 to November 2017, Gilead paid kickbacks by providing gifts to health care providers who attended and spoke at promotional speaker programs for Gilead’s HIV drugs. Gilead paid these speakers, who prescribed Gilead drugs at high rates, tens to hundreds of thousands of dollars to present at events. 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.

Attorneys general from California, Indiana, New York, North Carolina, and Virginia were part of the National Association of Medicaid Fraud Control Units team that looked into the case and negotiated a settlement on behalf of the states.

Alabama, Alaska, Arizona, Arkansas, California, Colorado, Connecticut, Delaware, Florida, Georgia, Hawaii, Idaho, Illinois, Iowa, Kansas, Kentucky, Louisiana, Maine, Massachusetts, Michigan, Minnesota, Missouri, Montana, Nebraska, Nevada, New Hampshire, New Jersey, New Mexico, New York, 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 are among the attorneys general who joined Attorney General Jackson in securing this settlement.

Concerning the Division of Medicaid Investigations (MID)

Medicaid fraud, patient abuse of Medicaid recipients, patient abuse of any patient in facilities that receive Medicaid funding, and misappropriation of any patient's private funds in nursing homes that receive Medicaid funding are all investigated and prosecuted by the Attorney General's MID.

The MID has so far obtained over $1 billion in penalties and restitution for North Carolina.  Call the MID at 919-881-2320 to report Medicaid fraud or patient abuse in North Carolina.  The U.S. Department of Health and Human Services provides the MID with seventy-five percent of its funding through a $8,453,116 grant award for Federal fiscal year (FY) 2025.  The State of North Carolina provides funding for the remaining 25%, or $2,817,703 for FY 2025.

WNCTimes

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