Attorney General Dan Rayfield Helps Secure $202 Million Settlement with Gilead Over Kickback Scheme Involving HIV Medications

Attorney General Dan Rayfield announced today that Oregon has joined a multistate coalition in securing a $202 million settlement in principle with Gilead Sciences, Inc., resolving allegations that the pharmaceutical giant paid illegal kickbacks to health care providers to promote its HIV medications. The unlawful scheme led to millions of dollars in false claims submitted to government health care programs, including Oregon's Medicaid program.

The settlement resolves claims that from 2011 to 2017, Gilead provided improper financial incentives-including honoraria, expensive meals, and travel perks-to doctors who attended or spoke at promotional events for its HIV drugs: Stribild®, Genvoya®, Complera®, Odefsey®, Descovy®, and Biktarvy®.

These actions, in violation of the federal Anti-Kickback Statute and state false claims laws, undermined medical integrity and put profits ahead of patients. Oregon will receive $467,556 as part of the national agreement.

"When powerful drug companies distort medical decisions with kickbacks, it's the patients-and public trust-that pay the price," said Attorney General Rayfield. "Oregon's Medicaid program is a lifeline for thousands of people living with HIV. This settlement ensures accountability and helps restore integrity to the system patients rely on."

The settlement stems from a whistleblower lawsuit filed under the federal and state False Claims Acts. As part of the agreement, Gilead has made detailed factual admissions about its conduct.

Background on Oregon's Medicaid Fraud Unit

The Oregon Department of Justice's Medicaid Fraud Unit investigates and prosecutes fraud, waste, and abuse in the Medicaid system. Over the past decade, the unit has secured more than 250 criminal convictions and 100 civil settlements.

MFU's total funding for the latest federal fiscal year (FY 2024) was $4,602,858. Of that total, 75% or $3,452,144 was awarded under a grant from the U.S. Department of Human Services. The remaining 25%, totaling $1,150,714 was funded by the State of Oregon.

To Report Fraud or Abuse: