Zyprexa Class Action Lawsuit Certified
September 8th, 2008 • Filed Under: News • 4 Comments
On Friday, a federal judge certified a Zyprexa class action lawsuit for a group of “third party payors” who allege that Eli Lilly committed fraud by selling their anti-psychotic drug at high prices, while exaggerating its benefits and understating the Zyprexa side effects.
Zyprexa was introduced by Eli Lilly in 1996 as a miracle drug for treatment of schizophrenia and bipolar disorder. It quickly became one of the pharmaceutical company’s best sellers, with annual sales of $4.8 billion by 2007.
The class action involves insurance companies, labor unions, pension funds and other companies who made payment toward Zyprexa prescription costs for users. Eli Lilly has already paid about $1.2 billion to settle thousands of Zyprexa lawsuits from individual users who suffered severe weight gain and diabetes from the medication.
Eli Lilly also faced criminal investigations for their marketing practices, which encouraged sales representatives to promote Zyprexa off-label for uses that were not approved by the FDA.
U.S. District Judge Jack B. Weinstein, from the Eastern District of New York, only certified the class action for a narrow group of claims involving the Racketeer Influenced and Corrupt Organization Act, and not claims those under state laws. The class certification also only includes payments or reimbursements for Zyprexa prescriptions administered between June 20, 2001 and June 20, 2005, although the plaintiffs had sought reimbursement for claims relating to Zyprexa as early as 1996.
The Judge’s order also unsealed hundreds of confidential documents produced by Eli Lilly as part of the Zyprexa litigation filed by users. Although Eli Lilly sought to keep the public from learning about the contents of the documents, Judge Weinstein indicated that the public’s right to be informed about contents of these documents outweighed Lilly’s interest in confidentiality.
“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,” wrote Judge Weinstein in a 295 page decision.
Comment by Daniel Haszard on 9 September 2008:
Zyprexa has generated a lot of bad press for Eli Lilly and they still have unresolved Zyprexa settlement claims.
Eli Lilly is ‘reaping the whirlwind’ for aggressive marketing of Zyprexa that has caused suffering and deaths.
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Daniel Haszard Zyprexa patient who got diabetes from it.
Comment by Saithia on 11 October 2008:
I’ve read that eli lilly is settling with 32 states. But my attorney haven’t told me anything. What are they trying to do ? Line their pockets with my money from my injuries. It’s already bad enough that my doctor says that zyprexa didn’t cause my diabetes. Also, being rediculed for my weight gain by family members that think they know it all. What can a person do when they have no-one standing by them? Family is waiting for me to get my money but being degraded by one every time I turn around. Eli Lilly should be paying more than what they have stated. And, I feel the Bush family, FDA and anyone working for/have worked for eli lilly to pay.
Comment by Robert on 5 February 2009:
Since begining use of Zyprexa, have suffered severe weight gain of more than 50 pounds and waist increase of 8 inches. Now a candidate for diabetes. Cannot seem to control weight gain.
Comment by Toim on 1 June 2009:
I was put on Zyprexa and for only 4 months, but it was enough to blow my weight sky high and give me diabetes which has irreversiblly changed my life