Gilead Sciences (GILD) has agreed to pay $202 million in the settlement of a civil fraud lawsuit accusing it of paying kickbacks to healthcare practitioners to promote its HIV treatment drugs, the US Attorney for the Southern District of New York said in a Tuesday statement.
The illegal kickbacks caused false claims for Gilead's HIV drugs to be paid by federal healthcare programs, in violation of the False Claims Act, according to the statement.
Under the settlement, Gilead agreed to pay a total sum of $202 million, of which around $176.9 million will be paid to the US and the remainder will be paid to various states. As part of the settlement, the company also made extensive factual admissions regarding its conduct, the statement said.
The settlement was approved Monday by US District Judge Paul Engelmayer.
Gilead did not immediately reply to a request for comment from MT Newswires.
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