By Jonathan Stempel

NEW YORK (Reuters) -Gilead Sciences agreed to pay $202 million to settle a whistleblower lawsuit accusing the drugmaker of civil fraud for paying kickbacks to doctors who agreed to prescribe its HIV drugs.

The settlement announced on Tuesday by U.S. Attorney Jay Clayton in Manhattan resolved charges that Gilead (NASDAQ: GILD ) violated the federal False Claims Act by defrauding Medicare, Medicaid and other programs into paying for drugs prescribed by doctors who spoke at and attended Gilead’s promotional speaker programs.

Investigators said that from 2011 to 2017, Gilead provided more than $23.7 million of speaker honoraria, paid for lavish meals at high-end restaurants, and covered travel costs, including to "desirable" locations such as Hawaii and New Orleans, for hundreds of healthcare providers.

According to settlement papers, some kickback recipients repeatedly attended programs on the same topic, including a group of 10 Manhattan doctors who spoke at or attended together approximately 384 dinners.

The HIV drugs included Biktarvy, Complera, Descovy, Genvoya, Odefsey and Stribild.

"With this settlement, Gilead has taken responsibility for its conduct," Clayton said in a statement. "The message is clear, companies that illegally drain taxpayer dollars from federal healthcare programs will be held accountable."

Gilead said it settled to avoid the cost and distraction of potential litigation. The Foster City, California-based company had set aside money for the settlement in last year’s fourth quarter.

The False Claims Act lets whistleblowers sue on behalf of governments and share in recoveries.

The Gilead case was originally filed in 2016 by Paul Bellman, a doctor who treats patients diagnosed with HIV/AIDS.

Gilead’s HIV drug sales totaled $19.61 billion in 2024, up 8% from a year earlier.