Eli Lilly Settles 18,000 More Zyprexa Suits
Eli Lilly agreed Jan. 4 to settle most of the remaining lawsuits alleging that it failed to adequately warn patients that the anti-psychotic drug Zyprexa increases the risk of diabetes. In agreeing to settle approximately 18,000 suits filed by 14 plaintiffs' firms, the company announced that it will take a...
January 05, 2007 at 05:48 AM
3 minute read
The original version of this story was published on Law.com
Eli Lilly agreed Jan. 4 to settle most of the remaining lawsuits alleging that it failed to adequately warn patients that the anti-psychotic drug Zyprexa increases the risk of diabetes.
In agreeing to settle approximately 18,000 suits filed by 14 plaintiffs' firms, the company announced that it will take a fourth-quarter settlement charge that is not expected to exceed $500,000. The company did not release the exact amount of the settlement.
“While we remain confident that these claims are without merit, we took this difficult step because we believe it is in the best interest of the company, the patients who depend on this medication and their physicians,” Sidney Taurel, chairman and CEO of the drug maker, said in a statement.
In June 2005, Eli Lilly agreed to pay about $700 million to resolve more than 8,000 similar suits involving Zyprexa. Another 2,500 claims also were settled prior to the Jan. 4 announcement. About 1,200 cases remain, and trials on those cases are expected to begin in April.
Most of the lawsuits claim that before September 2003, information about the risk of hyperglycemia, which the company says is an “infrequent adverse event” associated with Zyprexa, was not adequately displayed in the company's printed materials about the drug. In September 2003, the Food and Drug Administration required a label change that weakened claims by people who started taking the drug after that date.
Eli Lilly agreed Jan. 4 to settle most of the remaining lawsuits alleging that it failed to adequately warn patients that the anti-psychotic drug Zyprexa increases the risk of diabetes.
In agreeing to settle approximately 18,000 suits filed by 14 plaintiffs' firms, the company announced that it will take a fourth-quarter settlement charge that is not expected to exceed $500,000. The company did not release the exact amount of the settlement.
“While we remain confident that these claims are without merit, we took this difficult step because we believe it is in the best interest of the company, the patients who depend on this medication and their physicians,” Sidney Taurel, chairman and CEO of the drug maker, said in a statement.
In June 2005, Eli Lilly agreed to pay about $700 million to resolve more than 8,000 similar suits involving Zyprexa. Another 2,500 claims also were settled prior to the Jan. 4 announcement. About 1,200 cases remain, and trials on those cases are expected to begin in April.
Most of the lawsuits claim that before September 2003, information about the risk of hyperglycemia, which the company says is an “infrequent adverse event” associated with Zyprexa, was not adequately displayed in the company's printed materials about the drug. In September 2003, the Food and Drug Administration required a label change that weakened claims by people who started taking the drug after that date.
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