A high-stakes case over counterfeit HIV medications has taken an unexpected turn: the federal judge overseeing it has removed herself after learning her own brokerage account briefly held shares of Gilead Sciences, the pharmaceutical company at the center of the case.
Judge Mary Kay Vyskocil, based in Manhattan, disclosed that her financial advisor—without her knowledge—purchased $1,103 worth of Gilead stock earlier this summer. The discovery came more than two years into her handling of the multi-defendant case tied to a sprawling scheme that pushed fake HIV drugs into the black market and siphoned millions from Medicaid, Medicare, and private insurers.
Once aware of the trades, Vyskocil says she ordered her advisor to reverse the purchases immediately, knowing Gilead was due restitution in the matter. She notified all parties, but the disclosure fueled demands from one convicted defendant, Juan Hernandez, for her to step aside. Hernandez, sentenced in April to two years behind bars, had already been fighting a $2.38 million restitution order in Gilead’s favor.
The pharmaceutical giant argued in court filings that counterfeit sales of its branded HIV drugs, including Truvada and Descovy, endangered patients and cut into legitimate sales.
Vyskocil maintained she could remain impartial, but acknowledged the deeper issue wasn’t just reality—it was perception. Federal law requires judges to recuse themselves whenever their impartiality might reasonably be questioned, and she ultimately concluded that staying on risked undermining public confidence in the system.
“I am concerned that the confidence in the fair administration of justice not be undermined,” she wrote in her recusal order.
The twist arrives against the backdrop of tighter scrutiny of judges’ financial dealings. In 2022, Congress toughened disclosure rules after revelations that more than 130 judges failed to step away from cases involving companies in which they or their families held stock. Now, any stock trade over $1,000 must be disclosed within 45 days and made public online.
