Eli Lilly & Co., makers of Zyprexa, have settled about 18,000 claims alleging that it did not adequately warn patients or vendors that it can cause diabetes, but about 1,200 plaintiffs are holding out, and more suits are being filed by state governments and insurance companies.
Lilly announced that it agreed to settlement terms with 14 law firms. Lilly is to pay just under $500 million to settle the claims in the fourth quarter. Lilly has previously paid $700 million to compensate 10,500 victims in 2005.
More Legal Trouble
Lilly isn’t out of hot water yet. The company is facing suits from third-party payers who claim they would not have paid more for Zyprexa over other brands if they had been adequately warned of its risks.
The 1,200 personal-injury lawsuits still remaining could still be a threat to the company, some lawyers say.
Several states are also discussing filing suit against the makers of the blockbuster drug. Connecticut Attorney General Richard Blumenthal has broadened an existing investigation into Lilly’s Zyprexa marketing practices with cooperation from other states. Blumenthal said a “potentially huge claim” alleging that Lilly marketed the drug for unapproved uses may be in the making.
Some attorneys general have already filed lawsuits.
“What’s left is a significant number of seriously injured plaintiffs’ cases pending in state and federal court, and you have a half-dozen or more attorney-general cases and you have third-party payer class-action cases,” said one lawyer, William Audet, who represents more than 300 plaintiffs whose suits were not included in the last settlement.