Eli Lilly To Pay Over a Billion in Settlements

2009-01-16 16:06:04 (GMT) (WiredPRNews.com - Law, News)

Eli Lilly to pat more than a billion dollars in lawsuits

Drugmaker pleads guilty to illegal marketing charge and will pay to settle civil lawsuits.

Wired PR News.com — Eli Lilly, a well-known drug manufacturer, has recently pled guilty to illegally marketing Zyprexa, an anti-psychotic drug, for off-label use. As reported by the Associated Press (AP), Eli Lilly will pay an estimated $1.42 billion in settlements as a result. Though the drug Zyprexa is approved to treat schizophrenia and bipolar disorder, the company admits to inappropriately marketing the drug as a treatment for dementia. Eli Lilly is not allowed to do so without having the Food and Drug Administration’s approval.

Zyprexa, Eli Lilly’s top seller, came out on the market in 1996, bringing in over a billion dollars in quarterly revenue. The company is now having to pay in an estimated 1.6 billion in settlement damages. The case began in 2004, and has resolved more than 31,000 claims to date regarding Zyprexa liability. Additional lawsuits are still in the works by the Medicaid Fraud Control Units, insurance corporations, and other businesses claiming that Eli Lilly broke marketing regulations, and sold Zyprexa at a higher rates.