Gilead Sciences, Inc. to Pay $202 Million to Resolve FCA and AKS Allegations

Pharmaceutical manufacturer Gilead Sciences, Inc. agreed to pay $202 million to resolve civil allegations under The False Claims Act (FCA) and the Anti-Kickback Statute (AKS) in April 2025. The resolution settles a near decade-long qui tam lawsuit filed by a whistleblower who was an insider physician with firsthand knowledge of Gilead’s internal practices.

According to the settlement papers, the government alleged that Gilead ran a multi-year campaign using “speaker programs” to improperly incentivize healthcare providers to prescribe its HIV drugs, including Stribild®, Genvoya®, Complera®, Odefsey®, Descovy®, and Biktarvy®. These speaker and dinner programs, according to federal authorities, weren’t educational but were alleged instruments of kickbacks. The case highlights how insiders working with a trusted whistleblower attorney can hold even major pharmaceutical companies accountable.

The Allegations Against Gilead Sciences, Inc.

Between January 2011 and November 2017, Gilead Sciences hosted hundreds of HIV Speaker Programs, which were framed as educational initiatives. However, federal investigators alleged that these events were mainly part of a coordinated kickback scheme aimed at driving up sales of the company’s HIV medications. According to the allegations, Gilead gave out improper financial incentives to healthcare providers who participated in these programs, such as honoraria payments, lavish meals, and travel expenses at high-end restaurants and luxury tourist destinations nationwide. Key allegations include:

• Gilead’s HIV Speaker Programs were held at lavish restaurants across the country, including the James Beard House in NYC, where typical meals featured six courses with alcoholic pairings.
• More than 250 prescribers of Gilead’s HIV drugs attended the same HIV Dinner Program topic at least three times within a six-month span. Of those, over 80 prescribers attended five or more sessions on the same topic during that period.
• Gilead allegedly paid 548 healthcare providers over $23.7 million to induce them into prescribing their HIV drugs. One HIV Speaker, who received over $300,000 in total honorarium payments, wrote prescriptions for Gilead HIV Drugs that resulted in over $6 million in Medicare, Medicaid, and TRICARE payments.
• Gilead routinely covered travel costs for speakers to attend programs in desirable locations such as Hawaii, Miami, and New Orleans, sometimes specifically at the speaker’s request, turning what should have been compliance-regulated events into all-expense-paid trips.

The government argues that these practices were not only deceptive but also violated both the Anti-Kickback Statute and the False Claims Act, in which were considered fraudulent claims tainted by the kickback scheme which were submitted to federal healthcare programs turning taxpayer dollars into company profits.

Provisions of the False Claims Act and Anti-Kickback Statute

The False Claims Act [31 U.S.C. § § 3729-3733] is a federal law that allows the government to recover lost funds due to fraud. It holds individuals and entities liable for knowingly submitting—or creating the submission of—fraudulent claims for government funds. A distinctive feature of the FCA is its qui tam provision, which empowers private citizens, referred to as “relators,” to file lawsuits on behalf of the government. If successful, these whistleblowers are then entitled to up to 30% of what the government recovers as a whistleblower award. The FCA is regarded as the federal government’s most powerful tool for rooting out fraud.

The Anti-Kickback Statute [42 U.S.C. § 1320a-7b(b)] is a federal law that targets improper financial incentives in federally funded healthcare programs. It civilly and criminally prohibits the willful exchange of anything of value—known as “remuneration”—to induce or reward referrals for services reimbursable by federal healthcare programs. Remuneration is not just limited to cash—it includes lavish gifts, free travel, inflated consulting fees, or other non-monetary benefits. While referral incentives are allowed in some industries, in federal healthcare, they are strictly prohibited.

In this case, Gilead’s conduct fits within the scope of both statutes:

1. Kickbacks (in the form of honoraria, travel, and expensive meals) were allegedly offered to influence prescribing decisions.
2. Those prescriptions resulted in millions of dollars in claims submitted to federally funded programs such as Medicare, Medicaid, and TRICARE.
3. Claims allegedly stemmed from unlawful kickbacks and were deemed “false” under the FCA.

The Gilead settlement demonstrates a critical truth: even industry leaders are not above the law when it comes to compliance with federal healthcare regulations. It elucidates how the False Claims Act and Anti-Kickback Statute work hand-in-hand to penalize companies that misuse taxpayer dollars for profit. By rewarding and protecting whistleblowers, the law encourages transparency and accountability, ensuring that medical decisions are made based on patient needs—not financial incentives.

How Whistleblowers are Protected and Rewarded

The Gilead case was initiated when a physician-whistleblower filed a sealed qui tam complaint through the legal channels the FCA provides after observing what they believed to be fraudulent and unethical marketing behavior. Thanks to the whistleblower provisions of the False Claims Act, this individual physician was protected from retaliation and was eligible for a financial reward—typically between 15% and 30% of the government’s recovery. These whistleblower rewards and protections are designed to encourage individuals who have access to insider information—such as compliance officers, sales representatives, billing specialists, or medical professionals—to speak up when they witness fraudulent schemes involving federal funds.

Working with a whistleblower attorney is a critical step in this process. Filing a qui tam lawsuit is not the same as reporting internally or submitting a hotline tip—it is a formal legal action, filed confidentially in federal court, and requires carefully documented evidence, often built over time. A skilled whistleblower law firm can guide individuals step-by-step, from a free consultation to evaluating the strength of a potential case to preserving anonymity during the government’s investigation.

Brown, LLC is known for handling high-profile whistleblower cases—including a $950 million aggregate defense contractor settlement. Our team includes former Department of Justice attorneys who understand how FCA prosecutions unfold from the inside. If you believe you have information about fraud involving government funds, don’t wait. You may be able to help stop illegal conduct and be financially rewarded for your courage.