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Eli Lilly Settles W. Va Zyprexa Lawsuit for $22.5 Million

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The state of West Virginia has struck a $22.5 million settlement with Eli Lilly over claims the drug maker improperly marketed Zyprexa.  West Virginia was seeking reimbursement for Medicaid money spent on the Zyprexa.

Under the terms of the West Virginia Zyprexa settlement, Eli Lilly will pay $15.75 million to West Virginia and $6.75 million to lawyers representing the state.  Of the state’s share, $14.75 million is to be used to fund behavioral mental health services and $1 million for consumer protection purposes in the state, Bloomberg.com said. In addition to the payment, the West Virginia Zyprexa settlement also imposes restrictions on Eli Lilly regarding Zyprexa marketing. 

The West Virginia agreement is only the latest Zyprexa settlement struck by Eli Lilly. According to Bloomberg.com,  in January  the company struck a deal with the U.S. Justice Department in which it promised to pay $1.42 billion, including about $362 million to more than 30 states, to resolve a marketing probe.  In  October, Eli Lilly agreed to  pay 32 states and the District of Columbia a total of $62 million to  settle consumer protection claims over improper marketing.

Eli Lilly still faces other lawsuits filed by states that claim Zyprexa was marketed for unapproved uses, such as dementia and depression.  These lawsuits also allege that Eli Lilly withheld information about Zyprexa side effects, like diabetes and weight gain.  The drug, which is the company’s biggest seller, is approved to treat schizophrenia and bi-polar disorder.

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