Gilead Sciences Plunges 3.01% on $2.02B Kickback Settlement
1min read Gilead Sciences' stock price dropped 3.01% in pre-market trading on May 12, 2025.
Gilead Sciences has reached a $2.02 billion settlement with the U.S. government to resolve allegations of paying kickbacks to doctors. The allegations involve various forms of compensation, including lecture fees, meals, and travel expenses. The company is accused of spending millions of dollars on these activities to promote its HIV treatment drugs, which led to significant reimbursements from federal healthcare programs.
This settlement is part of a broader crackdown on corruption in the pharmaceutical industry, with multiple international drug companies facing similar allegations. The U.S. Department of Justice has been actively investigating these practices, aiming to curb the unethical promotion of medications.
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