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Pharmaceuticals Blog

Lilly to pay $15 million to settle Alaska’s Zyprexa suit

April 3rd, 2008 by Todd Hageman

Eli Lilly and  Alaska’s Attorney General issued a joint statement announcing that Alaska’s case against Lilly for violating the Alaska’s Unfair Trade Practices and Consumer Protection Act has been settled for $15 million.

The outcome of this case may affect talks between Lilly and other states regarding Medicaid coverage of injuries caused by Zyprexa, such as diabetes.  A friend of mine, Houston lawyer Tommy Fibich, was one of the lead attorneys who represented Alaska.

Both Pharmalot and the Anchorage Daily News reported earlier that after the state rested its case, and while the jurors were out of the room, Anchorage Superior Court Judge Mark Rindner said that without lawsuits like the one the State of Alaska has brought against Lilly over Zyprexa marketing, claims that drugs cause health problems “might well go unaddressed.” 

Rindner also touched on the issue of preemption which provides that federal law supercedes state law. Rindner asserted that the FDA “isn’t capable of policing this matter.”  The question of whether approval from the Food and Drug Administration of a drug supercedes state law claims challenging safety, efficacy or labeling is one the US Supreme Court will consider during its next term.

If you or someone you know has been injured as a result of taking a dangerous medication, contact Todd Hageman toll free at 1-877-767-3108 or e-mail THageman@simonpassanante.com.

 

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