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Lilly Subpoenaed for Documents Relating to Sales of Zyprexa

Source: Eli Lilly

In June 2005, Eli Lilly and company received a subpoena from Florida attorney general�s office seeking documents on Medicaid-related sales of the company�s Zyprexa and its marketing and promotional practices with respect to the schizophrenia drug. The subpoena came from the Medicaid Fraud Control unit of the state attorney general�s office, the company said in regulatory filing on August 3, 2005.

Lilly said it is possible that other company products could become subject to investigation and that the outcome of these matters could include criminal charges, fines, penalties, or other monetary or non-monetary remedies.

"We cannot predict or determine the outcome of these matters or reasonably estimate the amount or range of amounts of any fines or penalties that might result from an adverse outcome," Lilly said. "It is possible, however, that an adverse outcome could have a material adverse impact on our consolidated results of operations, liquidity, and financial position."

In addition, Lilly said it has been named as a defendant in approximately 230 product liability cases in the United States involving approximately 375 claimants alleging a variety of injuries from the use of Zyprexa. Most of the cases allege that the product caused or contributed to diabetes or high blood-glucose levels. The lawsuits seek substantial compensatory and punitive damages and typically accuse us of inadequately testing for and warning about side effects of Zyprexa. Many of the lawsuits also allege that we improperly promoted the drug. Almost all of the federal cases, involving approximately 345 claimants, are part of a Multi-District Litigation (MDL) proceeding before The Honorable Jack Weinstein in the Federal District Court for the Eastern District of New York.

In June, Lilly agreed to pay $690 million to settle about 8,000 Zyprexa lawsuits pending in the United States, over its alleged failure to provide adequate warning that the drug could increase a patients� risk for developing diabetes.

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