A federal judge dismissed most of the state's lawsuit, calling Mississippi Attorney General Jim Hood's approach a "slash-and-burn style of litigation" that could bankrupt Lilly and pharma, in general. Hood (pictured at left) hoped to recover Medicaid payments made for Lilly's antipsychotic, which was allegedly marketed for off-label use while downplaying risks, such as weight gain and diabetes. The drugmaker paid $1.4 billion to settle federal civil and criminal claims over alleged off-label marketing.
In a 117-page order, US District Court Judge Jack Weinstein maintained Zyprexa offered benefits despite the side effect allegations. "The state arguably saved large sums through use of Zyprexa by preventing users with serious mental problems from requiring hospitalization in state facilities, and allowing them to become productive taxpayers and participants in the economy," he wrote.
He decided Mississippi failed to make its case for penalties, writing that the statistical analysis used by Hood's attorneys, the Houston law firm of Bailey Perrin Bailey, failed to show Lilly harmed the state's Medicaid program. More than 40 states have sued Lilly, but Mississippi is the first to incur a setback, The Legal Newsline notes. However, Weinstein didn't dismiss the entire case - Mississippi can still attempt to prove Lilly charged the state more than Zyprexa was worth.
"If allowed to proceed in their entirety, the state's claims could result in serious harm or bankruptcy for this defendant and the pharmaceutical industry generally," he wrote. "For the legal system to be used for this slash-and-burn style of litigation would arguably constitute an abuse of the legal process. Constitutional, statutory and common law rights of those injured to seek relief from the courts must be recognized. But courts cannot be used as an engine of an industry's destruction."
Of the 12 states that did not settle their lawsuits against Lilly in a 33-state, $62-million agreement, five have already made their settlements official and others have tentative agreements, Legal Newsline reminds us. Those that settled include Connecticut; West Virginia; Idaho; Utah and South Carolina. Meanwhile, Montana, Minnesota, New Mexico and Louisiana have reached deals that have not been finalized. Lilly is apparently in talks with Arkansas, Pennsylvania and Louisiana.
10 Comments
Yet pharmaceutical companies routinely use the legal system to tie up and bankrupt individuals who simply try to obtain justice for harms caused including death.
Salmon
whoa! Lilly won a Zyprexa case?
through use of Zyprexa by preventing users with serious mental problems from requiring hospitalization
Mississippi must have a lot of mental illness. But, well, it is the South.
the state’s claims could result in serious harm or bankruptcy for this defendant and the pharmaceutical industry generally
Has anyone seen any sign of pharma about to go belly up? Perhaps he means his investments.
Important Question,... Has anyone asked, as to whether or not, the Federal Judge, has any financial holdings in Eli Lilly, that could have prejudiced his decision? Judges should also disclose any potential biases, he or she may have,...Yes?
How many patients in hospitals were given informed consent of the drug Zyprexa's side effects before being forced to take it?
How many people, are permanently disabled as a result of the drug?
This man is deranged, corrupt and probably paid off by Lilly.
Does the internal use of Zyprexa in certain hospitals on Medicaid patients mean anything?
I am a person who is bankrupt and the parent of a child who is disabled and whose life was ruined as a teenager when Zyprexa was prescribed off-label, under age 18 in 1999-2006.
Sorry Judge, but you FAIL.
Sounds to me like the judge is punishing Hood for not entering into the settlement with Lilly that the judge pushed so hard for.
It sure will send a message to the few other states that refused to obey and accept a paltry amount.
The line about bankrupting Lilly is the most laughable. How many families have went bankrupt paying for medical bills after being injured by the drug?
How many funerals had to be paid for and how about the lost earning potential of the dead victims.
And how about the part Lilly and other psych drug makers haved played in bankrupting our pubic health care programs over the past 15 years?
Also, what expert told this judge Zyprexa works any better than the old cheap drugs that cost pennies a day?
In any event, we're talking about "off-label" uses meaning the drug was never proven to work for the indication to begin with.
Finally, what statistics is this judge looking at that shows any improvement in mental illness since Zyprexa came on the market or any lowering of people disabled by mental illness and collecting government checks each month?
There has been no improvement nor reduction of people on SSI rolls.
I don't have to read the whole hundred and some odd pages to know that tax dollars were wasted in printing this opinion.
Eli Lilly sells a drug (Zyprexa) that can cause diabetes and then turn a profit on the drugs that treat the condition that they may have caused in the first place!
Eli Lilly has made $38 billion on Zyprexa and it was way oversold and caused diabetes and in some cases sudden death. Eli Lilly has received a huge criminal fine over their Zyprexa cash cow,add it all up comes to $4.6 billion, in Zyprexa settlements,fines,litigation.
Did you know that Lilly made $ billions last year on diabetic meds, Actos,Humulin and Byetta?
They sell a drug that can cause diabetes and then turn a profit on the drugs that treat the condition that they may have caused in the first place! ---- Daniel Haszard Zyprexa whistle-blower http://www.zyprexa-victims.com
Eli Lilly? Criminal entity, Eli Lilly (hurrah, one may state this factually, now!)?Purveyor of narcotics to the "intelligence" services? Go bankrupt? What a loss that would be.
Matt
Lilly has a solid history of corruption.
Indeed, it does. Look up the Oraflex case some day if you don't know it. "The dog ate my homework."
It also killed my mother.
I have made a decision not to trust the drugs companies, fool me once, shame on me, fool me twice , shame on you. The amount of drugs Iam willing to take have been shaped by their actions. Judge Weinstein is plain spoken. What the drug companies have done is so bad, if the full extent of the law was applied they would be out of business because of their greed. Judge Weinstein understand that is not his job, but maybe the D.O.J. job. We understand some, will have lawsuits that will hurt the drug companies. I have been educated about off-label, drug companies and lies and what it means not to have my day in court, mass tort. M.D.L.. I do not blame Judge Weinstein for the greed in the world. Doctors have lost their standing with me, I no longer trust them. I never knew they could look us in the face and be killing us, their patients, who trusted them. Iam glad it is almost over. All be said and done. Iam no longer mad, just HURT.