Markets
Gilead To Hand $45,000,000 to Texas After Allegedly Using “Free Nurses” as Kickbacks To Boost Medicaid Prescriptions
Oct 24, 2026, 11:45 UTC
Markets
Oct 24, 2026, 11:45 UTC
Oct 24, 2026, 11:45 UTC1 min read
Drugmaker Gilead Sciences has agreed to pay $45 million to resolve allegations that it used improper incentives to influence prescriptions covered by the Texas Medicaid program.
The settlement ends claims that the company engaged in an illegal kickback scheme that improperly influenced prescriptions paid for by Texas Medicaid.
In October 2023, Texas Attorney General Ken Paxton sued Gilead, alleging the company used unlawful marketing tactics to persuade medical providers to prescribe its drugs over competing treatments. The lawsuit accused Gilead of offering illegal incentives to Texas providers, including “free nurses” and reimbursement assistance services.
Many of the resulting prescriptions were covered by Medicaid, generating millions of dollars in claims to the Texas program that were allegedly tainted by Gilead’s inducements. The state argued that the practices violated the Texas Health Care Program Fraud Prevention Act (THFPA).
Says Paxton,
“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.
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.”
Gilead denies the allegations and says it settled to avoid a long and costly legal fight.
The $45 million includes the state’s attorneys’ fees, costs and expenses, along with part of the whistleblower’s legal costs, according to the agreement.
Paxton previously secured a settlement with AstraZeneca over a similar alleged kickback scheme, and his office has also taken legal action against Eli Lilly and Sanofi-Aventis.
