Attorney General Ken Paxton Secures $45 Million Settlement with Big Pharma Company Gilead to Protect Texas Medicaid

Attorney General Ken Paxton secured $45 million in a settlement with Gilead Sciences, Inc. ("Gilead") 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.

In October 2023, Attorney General Paxton sued Gilead for engaging in unlawful marketing practices that were designed to incentivize medical providers to prescribe its drugs over competitors' medications. 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. Such conduct violates the Texas Health Care Program Fraud Prevention Act ("THFPA").

Now, under the settlement, Gilead will pay $45,000,000 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. When Big Pharma attempts to bribe providers by offering kickbacks, the integrity of our healthcare system is jeopardized." said Attorney General Paxton. "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."

This settlement builds upon Attorney General Paxton's ongoing efforts to combat Medicaid fraud and protect Texas taxpayers. Previously, he 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 fraud and abuse. 

To read the settlement, click here.