Colorado receives $2.6M share of Lilly settlement over Zyprexa

-DenverBusinessJournal

06/18/2009 - Colorado has now received its $2.6 million share of a multistate settlement with Eli Lilly and Co. over allegations that the drugmaker improperly promoted the anti-psychotic drug, Zyprexa, state Attorney General John Suthers announced Friday.

"This award is a significant victory in our efforts to combat Medicaid fraud in Colorado," Suthers said in a statement. "This multistate settlement sends a clear message to pharmaceutical companies that we will vigorously pursue them when their business models unfairly burden public health programs underwritten by Colorado taxpayers."

As reported by DenverBusinessJournal.com on Jan. 15, the payment is the state’s share of a $1.4 billion national settlement announced that date in which Indianapolis-based Eli Lilly (NYSE: LLY) resolved four federal whistleblower lawsuits as well as claims by several states and the federal government.

It's the largest such fine for a single corporation imposed through criminal prosecution, the U.S. Department of Justice said.

Zyprexa is an antipsychotic medication used to treat certain psychological conditions, including schizophrenia and bipolar disorders.

Eli Lilly said in a release in January that the company agreed to settle the federal government’s civil investigation even though it doesn’t admit to the civil allegations.

Eli Lilly said it also agreed to plead guilty to one misdemeanor violation of the Food, Drug, and Cosmetic Act.

"We deeply regret the past actions covered by the misdemeanor plea," CEO John Lechleiter said in a statement. "At Lilly we take seriously our responsibilities to abide by all the laws governing our business practices, and we realize that we have a tremendous responsibility to the patients and health-care professionals we serve."

The claims against Eli Lilly alleged that the company "willfully promoted the sale and use of Zyprexa for certain uses that the Food and Drug Administration has not approved," such as treatment of depression, anxiety, irritability, disrupted sleep, nausea and gambling addiction, Suthers’ office said.

Lilly also has agreed that the U.S. Department of Health and Human Services will monitor the company’s future marketing and sales practices.

If you or a loved one have experienced Zyprexa side effects you may be entitled to compensation. Contact the Zyprexa attorneys of Ennis & Ennis today for a free confidential case evaluation. Our on staff nurse and lawyers are standing by to answer any questions you may have regarding Zyprexa side effects, a possible Zyprexa class action lawsuit, or any other type of Zyprexa litigation.