Gilead reaches $33M settlement with Florida clinics in 'colossal financial fraud' case
Sundry Photography/iStock Editorial via Getty Images


Gilead Sciences (NASDAQ:GILD) has reached a $33M settlement with more than 50 healthcare clinics in Florida accused of recruiting individuals to get HIV preexposure prophylaxis (PrEP) prescriptions through the company's free-drug access program with the clinics taking the reimbursement payments.

The settlement was first reported by STAT.
The lawsuit was originally filed in November 2020 and also included prescribers, medical laboratories, and pharmacies.
The health care clinics in question were run by Well Care.
Gilead (GILD) accused the clinics and others of recruiting homeless and low-income individuals, prescribing PrEP medications that were unnecessary that were given to them at no cost, and then seeking reimbursement from Gilead (GILD).
The suit further accused the defendants of taking the medications back from the recruits and then repacking them to give to others or sell on the black market.
The settlement also prohibits Well Care from taking part in Gilead access program in the future, STAT reported.
Seeking Alpha contributor Out of Ignorance wrote that Gilead's (GILD) future price performance will be influenced by the success of Trodelvy (sacituzumab), magolimab, and lenacapivir.