Three weeks into a trial in Alaska over the state’s claim to recoup medical bills paid on behalf of individuals who developed diabetes while taking Zyprexa, the lawsuit has settled. Eli Lilly, the manufacturer of Zyprexa has agreed to pay $15 million to the state instead of letting the jury decide the case. However, they may need to pay billions of dollars more to settle Zyprexa lawsuits brought by bigger states, and they still may face additional lawsuits from individuals who developed diabetes as a side effect of Zyprexa.

>>INFORMATION: Zyprexa side effects

Zyprexa is an antipsychotic medication which is approved for treatment of hallucinations and delusions caused by schizophrenia and bipolar disorder. Since the drug was approved in 1996, it has been taken by more than 23 million people and currently generates sales of about $4.8 billion a year.

Eli Lilly failed to warn about a risk of serious Zyprexa side effects, including severe weight gain, blood sugar changes, cholesterol problems and an increased risk of diabetes. According to evidence uncovered during the Zyprexa litigation, Eli Lilly actively attempted to minimize the risk of diabetes to doctors and encouraged doctors to prescribe Zyprexa for unapproved uses, which had not been deemed safe and effective by the FDA. The pharmaceutical company placed profits ahead of patient safety by providing false and misleading information to doctors due to their concerns that their sales would be hurt by the Zyprexa and diabetes link.

The Alaska state Zyprexa lawsuit is the first such case to go to trial, and with only 670,000 residents, the $15 million Zyprexa settlement is a large payment. Other states have also sued Lilly to recover money paid for medical bills generated by state Medicaid participants as a result of diabetes caused by Zyprexa. Lilly has already agreed to pay a $1.2 billion Zyprexa settlement for 30,000 individual lawsuits filed by users of the drug, and additional cases may still be brought by other individuals.


Users of Seroquel, another antipyschotic drug in the same class of medications as Zyprexa, have also faced an increased risk of diabetes, and Seroquel lawsuits are pending throughout the United States for individuals who developed diabetes after taking the drug. The first Seroquel trials are scheduled to begin towards the end of this year, and it is unclear whether the Zyprexa settlements will have any impact on the chances of a Seroquel settlement.

The lawyers at Saiontz & Kirk, P.A. represent individuals who are pursuing Zyprexa and Seroquel lawsuits as a result of diabetes and other medical problems caused by side effects of the medications. If you, a friend or family member developed diabetes after taking one of these drugs, request a free consultation and claim evaluation.