Lilly Faces Zyprexa Class Action By 3rd-Party Payors

-Pharmalot

09/07/2008- Insurers, labor unions and pension funds can proceed with a class-action suit that claims they were overcharged by the drugmaker, which allegedly withheld information and disseminated misinformation about the safety and effectiveness of the antipsychotic, according to a hefty, 295-page opinion by US District Court Judge Jack Weinstein. His decision comes two months after he urged Lilly to settle.

Interestingly, Weinstein writes that there is “sufficient evidence of fraud under RICO, the Racketeer Influenced and Corrupt Organizations Act through mail fraud, predicated on overpricing supported by excessive claims of utility as well as disavowal of secondary effects of the drug, primarily weight gain and diabetes.”

At the same time, the federal judge, who is based in Brooklyn, New York, denied class-action status to individuals suing Lilly, because he decided it would be difficult to obtain necessary payment data as well as a conflict, since they are suing the drugmaker “for personal injury and could potentially sacrifice the proposed overpayment class for a better recovery in their individual suits.” Here is the opinion in three parts - one, two and three.

And more than a year after he scolded a lawyer, a plaintiff’s expert witness and a journalist for conspiring to leak sealed documents (back story), Weinstein has now unsealed 350 documents, following a similar move by a state court in Alaska, where Lilly recently settled Zyprexa litigation for $15 million. In explaining his decision, Weinstein reasons that “Lilly’s legitimate interest in confidentiality does not outweigh the public interest in disclosure at this stage of the litigation…

“Public access is now advisable because this litigation involves issues of great public interest, the health of hundreds of thousands of people, fundamental questions about our system of approval and monitoring of pharmaceutical products, and the funding for many health and insurance benefit plans. Public and private agencies and organizations have a right to be informed. At this stage, public disclosure, congruent with our long tradition of open courts, is desirable.”

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.