Lilly to pay $1.4B to settle Zyprexa marketing charges

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

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