Eli Lilly Agrees to Pay an Additional $62 Million to Settle Zyprexa Lawsuits by 32 States

Austin Kirk

By Austin Kirk
Posted October 9, 2008

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Eli Lilly has previously settled over 30,000 Zyprexa lawsuits brought by individuals who suffered diabetes, pancreatitis and other injuries as a side effect of this drug. This week they agreed to pay an additional $62 million to 32 states and the District of Columbia over claims that they improperly marketed the drug off-label, and this is not likely to end their legal troubles.

Zyprexa (olanzapine) was approved in 1996 for treatment of schizophrenia and bipolar disorder. More than 26 million people worldwide have used the drug, and many of the prescriptions have been off-label, for unapproved indications such as dementia and mild forms of bipolar disorder.

Eli Lilly & Co. has been accused of heavily promoting the drug for non-approved uses, which has helped them build the drug into a blockbuster that generates over $4.8 billion in annual sales. They have also minimized the potential side effects of Zyprexa, which could lead to severe weight gain, diabetes and other adverse health consequences.

In response to lawsuits filed by users who suffered from Zyprexa side effects, Eli Lilly has already paid about $1.2 billion in settlements. They also paid $15 million to the state of Alaska as part of a Zyprexa settlement for prescription reimbursements, rather than allowing the jury to decide the case after three weeks of trial.

Even after this latest settlement with 32 states and Washington, D.C., it will not end the legal actions Eli Lilly faces over the drug.

Civil and criminal investigations are still being pursed by federal prosecutors in Philadelphia related to Eli Lilly’s off-label marketing of the drug. The New York Times reports that Eli Lilly is expected to pay over $1 billion in fines and restitution to resolve the federal investigations and the company may also have to plead guilty to criminal charges related to their marketing.

Last month a federal judge certified a Zyprexa class action lawsuit for insurance companies, labor unions, pension funds and other third party payors who covered Zyprexa prescriptions between June 20, 2001 and June 20, 2005. The lawsuit alleges that Eli Lilly committed fraud by selling the drug at high prices, while exaggerating the benefits and understating the side effects.

The current settlement, announced on October 7, 2008, is the largest paid by a drug company in a state consumer protection case, which claimed Eli Lilly had violated consumer protection laws by aggressively promoting the drug to doctors for non-approved purposes in order to boost its profits.

6 Comments • Add Your Comments

  • Elizabeth says:

    I was never informed by my attorneys or the FDA of the Black Box I now am a victim of a drug manufacturer that caused my illness I have glaucoma and type 2 diabetes from Zyprexa this drug should have been taken off the market and black box permanently but the United States FDA turn around and allow the drug to be prescribed too many of millions of patients that have died already passed due to the ingestion of the drugs that EI Lilly and Company made in Indianapolis Indiana there are many victims that never had a story to tell what a drug manufacturer had done to them as well as the American natives that passed Without a Cause from tuberculosis as well as smallpox we should all learn a lesson that America’s drug manufacturers is not what it’s supposed to be it is a murderer without cause writer author s.w.a.t survivor with a testimony UNDERSIGNED YOURS DOA

    Posted on January 28, 2020 at 3:34 am

  • Christopher says:

    I have been on Zyprexa for 8 months, put on 40 plus pounds, I also have joint pain, swelling of the tongue that makes it hard to speak.

    Posted on June 11, 2020 at 12:42 pm

  • Morgan says:

    I have all sorts of side effects since I have been on Olanzapine, started back around 2011. I am just now seeing all the different websites, lawsuits and stories from other people who have been on it. I wish I would have known sooner!! I suffer from hallucinations and delusions, weight gain, back pain, decreased coordination, signs of Tardive Dyskinesia, memory problems, change in my personality, tremors, and dizziness etc. Also, my vocabulary is decreased; when I’m speaking I forget words and sentences. I’m slowly going to start taking myself off of this medication right away, but I will let my doctor know. I pray these side effects are reversible.

    Posted on July 31, 2020 at 7:50 pm

  • Dale says:

    I was on Zyprexa from 2001-02, gained about 70 lbs, insomnia & 10-15 open sores on each arm draining fluid.

    I hired a law firrn in 2007, got screwed over on a stalking case, went thru foreclosure, got cleaned out, all paperwork gone & too far back to remember.

    Posted on November 13, 2020 at 4:25 pm

  • Mike says:

    I had to take it for 5 years in Poland, since 2000 to 2005 year. Zyprexa is available in over 118 countries.
    When I succed tu put it down, I had, many healh problems. I can’t to work, until today. But earlier I was, 20 years old, young man, quite healthy. After I used it, I had, problems with moving, and talking, and many others symptoms. First, after put it down, I had to drink over 180l of water (it is about 4-5 over norm of dehydration), and to eat over 500 chocoltes. After 12 years of sport activity, over 20 tousends, bike driving, run over, 4000 km, and other activity. I still have problems with, moving (Zyprexa caused muscle damage, and brain too.) It’s very dangerously drag, and it should be prohibited. Actually i’m starting to get new layer.

    Posted on January 6, 2021 at 11:21 am

  • Jana says:

    PLSE zyprexa since 16 years old

    I’m 47 years old now
    I only need depakote x malpractice x physical assault sssss on my life

    Posted on January 3, 2025 at 7:22 am

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