New Jersey secures nearly $2.9M in multi-state settlement over Gilead HIV drug kickback scheme
NEW JERSEY — New Jersey has joined a coalition of 48 other states, the District of Columbia, Puerto Rico, and the U.S. Virgin Islands in a $202 million settlement with pharmaceutical company Gilead Sciences, Inc., over an illegal kickback scheme to promote its HIV medications, according to Attorney General Matthew J. Platkin and the Office of the Insurance Fraud Prosecutor (OIFP).
The lawsuit alleged that Gilead violated both federal and state laws from January 2011 to November 2017 by providing healthcare providers with illegal incentives—such as cash, lavish dinners, travel to luxury destinations, and other perks—in exchange for prescribing its costly HIV medications. These practices led to the submission of millions of dollars in false claims to government healthcare programs, including Medicaid and Medicare.
Of the total settlement, $49 million is allocated for Medicaid programs across the nation. New Jersey will receive $2,866,237.79, of which $1,704,699.87, plus interest, will remain with the state. The rest will be 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.”
Gilead’s HIV drugs involved in the scheme included Stribild, Genvoya, Complera, Odefsey, Descovy, and Biktarvy. The company allegedly paid certain high-volume prescribers substantial sums to act as “HIV Speakers,” while also covering their travel and entertaining them at upscale restaurants in cities such as Hawaii, Miami, and New Orleans.
“My Office was pleased to collaborate with investigators and attorneys across the nation, and with our federal partners, to obtain restitution for New Jersey taxpayers,” said Interim Insurance Fraud Prosecutor Al Garcia.
The U.S. District Court for the Southern District of New York approved the settlement, which was reached in coordination with the U.S. Department of Justice. The investigation and settlement negotiations were conducted by a team from the National Association of Medicaid Fraud Control Units (NAMFCU), including representatives from California, Indiana, New York, North Carolina, and Virginia.
Deputy Attorney General Lauren Aranguren and Bureau Chief Heather Hadley of OIFP’s Medicaid Fraud Control Unit represented New Jersey in the settlement.
The Medicaid Fraud Control Unit’s total funding for federal fiscal year 2025 is $12,626,363, with 75% provided by a U.S. Department of Health and Human Services grant and the remaining 25% funded by the State of New Jersey.
