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Lilly to pay $1.4B to settle Zyprexa marketing charges

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For some time now, advocates for seniors have complained that anti-psychotic drugs were being used to chemically restrain demented patients, leaving them sedated and unaware. Now one drugmaker, Eli Lilly, is publicly admitting that it had been marketing the anti-psychotic drug Zyprexa as a treatment for dementia, even though the FDA hadn't approved it for such a use.
 
Under a settlement with the U.S. Department of Justice, Lilly is pleading guilty to one misdemeanor criminal charge for off-label promotion of Zyprexa as a dementia treatment between September 1999 and March 2001.

As part of its punishment, Lilly will pay $515 million, the largest fine imposed on an individual corporation in U.S. criminal prosecution. It will also give up $100 million. On top of these fines, Lilly will pay an almost $800 million civil settlement with the federal government and states to resolve allegations under the False Claims Act, moneys that will be split between the feds and state Medicaid programs.

To find out more about the settlement:
- read this Modern Healthcare piece

Related Articles:
Lilly accused of off-label Zyprexa use
States seek Lilly help with Zyprexa costs
Lilly to pay $500M to settle Zyprexa diabetes claims

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Comments

( This, 'we are going pay out the $1.4 billion' is nearly 3 year old PR churned out from Lilly handlers)

Where is the money going as many victim claimants haven't been paid yet?

Something fishy going on here?
Daniel Haszard

In 2000 my mother at age 89 with dementia, came to live with me. She was put on Zyprexa. I knew it was an anti-psychotic and watched her closely. It caused her to have nightmares and flail around in the night. I just took it upon myself to take her off this med. She passed away in 2003. A year or so later I read in the USA Today that Eli Lilly company stated that Zyprexa was causing Alzheimers patients to die quicker. I was shocked and relieved. I think that Eli Lilly Company should compensate families who have suffered because of their arrogance. Thank you, a caregiver.

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