This article details a settlement between Gilead Sciences and the District of Columbia, where Gilead will pay $316,413.92 to resolve allegations of an illegal kickback scheme.
Here’s a breakdown of the key points:
The Allegation: Gilead is accused of paying doctors and healthcare providers through “HIV Speaker Programs” (involving honoraria, meals, and travel) to promote and prescribe their HIV medications over competitors.
The Violation: These payments are considered illegal kickbacks, which induced insurance claims filed with the District’s Medicaid program. This violated the District’s False Claims Act (FCA).
The Scheme: Between 2011 and 2017, 548 healthcare providers received over $23.7 million in payments from Gilead for this purpose.
The Settlement: Gilead agreed to pay a total of $202 million in a federal and multistate settlement.The District of Columbia will receive $316,413.92 of this amount, with $256,295.27 specifically going to DC Medicaid.
The Source of the Action: The settlement stems from a qui tam lawsuit filed by Dr. Paul Bellman under the federal FCA and state false claims statutes. Qui tam allows private citizens to sue on behalf of the goverment to recover defrauded funds. Attorney General’s Statement: Attorney General Schwalb emphasized that Gilead’s actions cheated District patients and taxpayers by influencing prescriptions with under-the-table payments, and that the office will continue to protect residents from illegal business practices.
* District’s FCA: The article also explains that the District’s FCA allows the Office of the Attorney General to sue those who make false claims to the District government to improperly obtain funds, with potential recoveries including treble damages, civil penalties, and attorney’s fees.
