Utah Settles Zyprexa Claims Against Eli Lilly for $24 Million | Dallas, Texas Personal Injury Attorney Blog

The State of Utah has agreed to a $24 million dollar settlement agreement with Eli Lilly for marketing of Zyprexa for “off label” uses. The Food and Drug Administration had approved Zyprexa’s use for treating schizophrenia and bipolar disorders. But, Utah investigators say, Eli Lilly’s sales force had been encouraging, since 1999, doctors to prescribe the drug for dementia, Alzheimer’s, agitation, aggression, hostility, depression and generalized sleep disorders. Zyprexa’s side effects include significant weight gain and obesity — part of a metabolic syndrome, and can lead to diabetes, hypertension and stroke.

“The thing that was remarkable was how vigorously it was promoted and how much we spent in our Utah Medicaid program” — the state’s Zyprexa tab totaled $11 million since 2007, said David Sundwall, executive director of Utah’s Department of Health.

“This isn’t just about money,” Utah Attorney General Mark Shurtleff said Wednesday. “The victims were those who could least afford health care.” Shurtleff said, besides the settlement money, the state “wanted [Eli Lilly’s] bad conduct to stop.” According to Utah’s investigation, 1,769 Utah Medicaid patients over age 65 took Zyprexa without the proper diagnosis.

While Eli Lilly representatives claim, “We have always lived by the highest standards in promoting our drugs,” the company has battled Zyprexa litigation since 2003.
•· In 2008, Eli Lilly settled a lawsuit filed by 32 states for $62 million;

•· Utah was one of 13 states that chose to file separately;

•· Eli Lilly also settled with Alaska in 2008 for $15 million;

•· In January, 2009 Eli Lilly settled with the federal government for $1.42 billion in criminal and civil fines and Medicaid restitution in more than 30 states;

•· In 2009, Eli Lilly settled with Connecticut for $25.1 million;

•· In 2009, Eli Lilly settled with Idaho for $13 million;

•· In 2009, Eli Lilly settled with South Carolina for $45 million; and

•· In 2009, Eli Lilly settled with West Virginia for $22.5 million