Eli Lilly Agrees To Pay $15M To Settle Alaska Medicaid Lawsuit Filed Over Zyprexa Allegations

Main Category: Pharma Industry / Biotech Industry
Also Included In: Litigation / Medical Malpractice;  Schizophrenia
Article Date: 27 Mar 2008 - 7:00 PST

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Eli Lilly has agreed to pay $15 million to settle a lawsuit filed by the state of Alaska over allegations that the company concealed data about the side effects of Zyprexa, a schizophrenia and bipolar disorder medication, and cost the state Medicaid program millions of dollars because of an increased incidence of diabetes among beneficiaries, the Indianapolis Star reports (Spalding, Indianapolis Star, 3/26). According to the lawsuit, filed in 2006, Zyprexa led to a number of health problems -- such as weight gain, hypertension and diabetes -- in Alaska Medicaid beneficiaries (AP/Miami Herald, 3/26). The lawsuit sought $270 million in damages.

Under the settlement, which ended a trial that began on March 3, Lilly agreed to ensure that Alaska is "treated as favorably as any other state" in any future settlements of similar lawsuits (Indianapolis Star, 3/26). Lilly faces lawsuits filed by at least nine other states over allegations that the company illegally marketed Zyprexa for unapproved uses and concealed data on the side effects of the medication (Manzor, Wall Street Journal, 3/26). Lilly made no admission of wrongdoing in the settlement (AP/Miami Herald, 3/26).

Lilly general counsel Robert Armitage said that the company had a "strong defense" but decided to settle the lawsuit in the interests of all parties involved. He added, "Our decision to resolve this case does not change the fact that Zyprexa can continue to improve the lives of patients around the world who are suffering from schizophrenia and bipolar disorder" (Indianapolis Star, 3/26).

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