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Settlement Reached In 32-State Product Liability Suit Against Eli Lilly

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Brent Adams
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Eli Lilly & Co. has agreed to a payment of $62 million to 32 states in order to settle product liability claims that its top-selling drug, Zyprexa, was improperly marketed to patients who did not have schizophrenia or bipolar disorder, which are the only uses the drug is approved for.

Lilly had been accused by attorneys general from several states for off-label uses and inadequately disclosing the side effects of the drugs to health-care providers. Doctors are allowed to prescribe drugs for uses the FDA has not approved them for, but a drug company is not allowed to market them to be used for any use other than FDA-approved ones.

The company, which is based out of Indianapolis, Indiana, never admitted any wrongdoing.

Since 2005, 31,000 product liability suits against Zyprexa have been settled by Lilly, which has paid out more than $1.1 billion in those settlements.

Lilly is still facing separate litigation in 11 other states, generally involving issues of consumer protection or reimbursement of Medicaid.

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