New Jersey Secures $2.9 Million in Settlement over Gilead Sciences' Kickback Scheme

The state of New Jersey, along with a coalition of 48 other attorneys general, has secured a $202 million settlement from Gilead Sciences, Inc. (Gilead), for running an illegal kickback scheme to promote its HIV medications. The settlement, reached in coordination with the U.S. Department of Justice and approved by the U.S. District Court for the Southern District of New York, provides $49 million for Medicaid programs nationwide, with the remainder going to Medicare, Tricare, and the AIDS Drug Assistance Program (ADAP). New Jersey retains $1.7 million plus applicable interest, while the remaining amount is returned to the federal government.

Key Takeaways:

• The settlement involves Gilead's illegal kickback scheme to promote its HIV medications, including awards, meals, and travel expenses to healthcare providers.
• The scheme resulted in millions of dollars of false claims submitted to government healthcare programs, including New Jersey's Medicaid program.
• The total portion of the amount paid by Gilead to New Jersey is $2,866,237.79, with $1,704,699.87 retained by the state and applicable interest.
• A National Association of Medicaid Fraud Control Units (NAMFCU) Team, including representatives from several state Offices of the Attorneys General, participated in the investigation and conducted the settlement negotiations with Gilead.
• Joining New Jersey in securing the settlement are 47 other attorneys general from across the country.

Statistics:

• $202 million settlement secured from Gilead Sciences, Inc. (Gilead).
• $49 million allocated for Medicaid programs nationwide.
• $2,866,237.79 total amount paid by Gilead to New Jersey.
• $1,704,699.87 retained by New Jersey plus applicable interest.
• $12,626,363 total funding for the New Jersey Medicaid Fraud Control Unit (MFCU) for federal fiscal year (FY) 2025.
• $9,469,776 awarded under a grant from the U.S. Department of Health and Human Services for FY 2025.
• $3,156,587 funded by the State of New Jersey for FY 2025.

Sources:

• Office of the Attorney General, The State of New Jersey (Matthew J. Platkin et al.).
• U.S. District Court for the Southern District of New York.