Attorney General Matthew J. Platkin and the Office of the Insurance Fraud Prosecutor announced that New Jersey has joined a coalition of 48 other attorneys general in securing $202 million from Gilead Sciences, Inc. The settlement addresses an illegal kickback scheme by Gilead to promote its HIV medications.
Gilead was found to have violated federal and state laws by offering incentives such as awards, meals, and travel expenses to healthcare providers for prescribing its costly medications. This led to millions of dollars in false claims submitted to government healthcare programs, including New Jersey’s Medicaid program.
The settlement, coordinated with the U.S. Department of Justice and approved by the U.S. District Court for the Southern District of New York, allocates $49 million for Medicaid programs nationwide. The remaining funds are designated for Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP).
New Jersey’s share of the settlement is $2,866,237.79, with $1,704,699.87 plus applicable interest retained by the state. The rest is returned to the federal government.
“Government healthcare dollars are precious and must be used without favor in order to achieve the highest possible health outcome for those who use these programs,” said Attorney General Platkin. “Money should never be an influence when a doctor decides how to treat a patient living with HIV—this sort of influence not only impacts the patient but it also hurts New Jersey taxpayers.”
Interim Insurance Fraud Prosecutor Al Garcia expressed satisfaction in collaborating with national investigators and attorneys as well as federal partners to secure restitution for New Jersey taxpayers.
From January 2011 to November 2017, Gilead breached federal anti-kickback laws by providing gifts at promotional speaker programs for its HIV drugs: Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy. High-volume prescribers were paid substantial sums as “HIV Speakers.” Travel expenses were covered for speakers traveling long distances or to attractive destinations like Hawaii and Miami.
Gilead’s internal compliance mechanisms failed to prevent these violations despite having policies intended to stop sales representatives from improperly offering incentives.
A National Association of Medicaid Fraud Control Units Team participated in investigating and negotiating settlements on behalf of states involved. Representatives included offices from California’s Attorney General along with Indiana’s office among others.
Deputy Attorney General Lauren Aranguren alongside Bureau Chief Heather Hadley handled negotiations representing New Jersey State during proceedings against Gilead.
New Jersey MFCU received total funding amounting up-to $12 million-plus approximately during FY2025 wherein major portion came via grants provided through US Department Health Human Services while remaining percentage funded directly through NJ State itself
