Pharmaceutical Giant Still Battling States Over Fraud
October 5, 2009
On September 29, 2009, Legal Newsline published an update on a multi-state case involving Eli Lilly & Co. In the case, the states argued that the pharmaceutical giant promoted off-label uses for the drug, Zyprexa, and also claimed the drug’s side effects overburdened their Medicaid programs.
So far, eight of the 12 states with cases have settled with Eli Lilly on the same terms, with differing monetary values according to state population. These states include West Virginia, Connecticut, Minnesota, Montana, New Mexico, Louisiana, Utah and Idaho. The four states yet to reach agreements are Arkansas, Mississippi, Pennsylvania and South Carolina.
Eli Lilly has already settled consumer protection claims with 33 other states for $62 million, and also agreed to pay $1.4 billion to settle federal civil and criminal claims stemming from the alleged off-label marketing.
The payment also benefited the Medicaid programs of more than 30 states that received approximately $362 million, collectively.
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