Lilly Settles Zyprexa Lawsuit
Posted by Administrator (admin) on Aug 27 2009 at 12:59 PM
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The payout comprises $15.75 million to the state of West Virginia, plus $6.75 million to its outside attorneys

This is the latest payout that Lilly makes for Zyprexa. The company had to pay at least $2.6 billion this year in order to settle different personal-injury lawsuits and government investigations regarding its marketing practices related to the drug. Zyprexa is one of the best-selling drugs made by the Indianapolis-based company.

The litigation is based on the allegations that use of Zyprexa caused high blood sugar and diabetes in users, and that Lilly failed to properly warn regarding these health-risks. According to the lawsuit, Lilly also marketed the drug for unapproved uses such as helping patients fall asleep, which officials say caused improper compensation claims for the drug to be submitted to government health-insurance programs.

Lilly reached the settlement with West Virginia in late July. Lilly has booked a pretax charge of $105 million to cover expected settlements with several U.S. states. The company is advanced discussions with various states.

Lilly has cases pending with Arkansas, Connecticut, Idaho, Louisiana, Mississippi, Minnesota, Montana, New Mexico, Pennsylvania, South Carolina and Utah.

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