Drug company false advertising brings $1.4 billion settlement

January 22, 2009 (AmericanInjuryNews.com - Personal Injury, Product Liability)

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Image Wiki:Zyprexa to settle $1.4 billion lawsuit

AmericanInjuryNews.com by Dallas Product Injury Lawyer Brian A. Eberstein. Eli Lilly may settle illegal marketing of Zyprexa lawsuit for $1.4 billion

Dallas, TX (AmericanInjuryNews.com)–The NY Times reported drug company, Eli Lilly, is nearing a possible $1.4 billion settlement for criminal and civil allegations of false advertising. Eli Lilly, a major U.S. drug company, has been charged with illegally marketing its top antipsychotic for off label, unauthorized use in patients known to be susceptible to its dangerous side effects.

As previously reported by JusticeNewsFlash.com (JNF), Zyprexa, an atypical antipsychotic, increases the risk of heart attack, sudden cardiac death, and pneumonia in elderly patients with dementia. Lilly has been accused by the United States attorney’s office, for the Eastern District of Pennsylvania, for knowingly targeting this high risk population with advertising and physician prescription campaigns. Court room insiders allege this case was made possible for lawyers to prosecute because of corporate whistle blowers working inside the drug company.

The U.S. Food and Drug Administration (FDA) www.fda.gov specifically bars drug makers from promoting and soliciting use of their medications for conditions the federal government has not approved. The United States attorney’s office has made serious allegations stating Lilly executives also strongly advised doctors to treat disruptive children with Zyprexa. Medical research studies and court documents reveal the company has been aware Zyprexa tends to cause metabolic disorders and severe weight gain in these children. Zyprexa’s prescription use in children and the elderly has sky rocketed in the past decade.

Eli Lilly’s, Zyprexa, has generated more than $39 billion in sales since FDA approval in 1996. These figures have elevated this, one drug, to classify as one of the biggest-selling drugs in the world. Zyprexa generated $4.8 billion in sales, in 2007, making it the largest block-buster selling drug for Eli Lilly. The drug company’s total revenue last year was $18.6 billion. The drug can cost patient’s up to $25 for one daily pill. One of the shocking revelations is Eli Lilly generates a huge part of its revenue from reimbursements from the federal Medicaid and Medicare programs.

AmericanInjuryNews.com by Dallas Product Injury Lawyer Brian A. Eberstein
Practice areas: Product Liability Claims
Amy Witherite. Eberstein & Witherite, LLP. 3100 Monticello Avenue, Suite 500. Dallas, TX 75205 - Toll Free: (888) 407-6669

Tags: company, Dallas product injury lawyer, Drug, pill, Zyprexa
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