Texas Attorney General Ken Paxton secured a $45 million settlement with Gilead Sciences, Inc. to resolve claims that the company engaged in an illegal kickback scheme that influenced prescriptions paid for by Texas Medicaid, according to an Oct. 22 news release from the Office of the Attorney General.
The office said Paxton sued Gilead in October 2023, alleging unlawful marketing practices designed to encourage medical providers to prescribe its drugs over competitors’ medications. According to the release, the company offered incentives to Texas providers, including “free nurses” and reimbursement support services. The attorney general’s office said many of the resulting prescriptions were covered by Medicaid, leading to claims that were tainted by the inducements.
The office said the conduct violates the Texas Health Care Program Fraud Prevention Act. Under the settlement, Gilead will pay $45 million to the state, the release said.
“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,” Paxton said in the release. “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 attorney general’s office said the agreement builds on its efforts to combat Medicaid fraud and protect taxpayers. It noted a previous settlement with AstraZeneca over what it described as a similar kickback scheme, and said it has also taken legal action against Eli Lilly, Sanofi-Aventis and other major pharmaceutical companies.
The release included a link to the full text of the settlement.