Lilly Plans to Settle Most Zyprexa Legal Cases for $690 Million

Zyprexa Lawsuits Alleged Failure to Warn About Diabetes Side Effect Risk

In the first part of June 2005, Eli Lilly & Co. said it had reached an agreement with certain groups of plaintiffs’ lawyers to settle most of of the legal claims against the pharmaceutical company over its antipsychotic drug Zyprexa.

Lilly will establish a fund not to exceed $690 million to pay compensation to those plaintiffs who agree to settle their legal claims against the drug company. The settlement offers by Lilly are expected to be accepted by approximately 8,000 patients who used Zyprexa.  Lilly said that when finalized, the settlement would resolve the majority of pending claims in federal and state courts, as well as many cases that were not filed in accordance with a "tolling agreement" between Lilly and certain groups of plaintiffs’ lawyers.  Most of the patients’ claims alleged that Zyprexa had given the patients diabetes or diabetes-related health problems.

Concerns that Zyprexa caused weight gain and, in turn, diabetes emerged about five years ago.  As use of Zyprexa expanded, increasing number of reports surfaced that doctors saw pronounced weight gain and worsening cholesterol levels in certain patients. Many of the Zyprexa legal claims claimed that Lilly had not put increased warnings about Zyprexa’s risks in the package insert when the company first learned about the weight gain – diabetes side effect problem, allegedly as early as 1996 — well before the FDA requested that Lilly make such a label change in 2003.

As background, due in large part to lawsuit filings against Lilly, Zyprexa was at the center of a debate over the safety of the newer generation of antipsychotic drugs, known as atypical antipsychotics.  The FDA ruled in 2003, however, that the whole class of atypical antipsychotics carried the weight gain – diabetes side effect risk.  At the same time, the FDA ordered Lilly to add stronger warnings to the Zyprexa package insert, or warning label, and made other companies do the same for their atypical antipsychotic drug products.

Lilly Chairman, President and Chief Executive Sidney Taurel said in a statement, "While we believe the claims are without merit, we took this difficult step because we believe it is in the best interest of the company, the patients who depend on this medication, and their doctors."

Finally, a Lilly spokesman emphasized that the drug company will "continue its vigorous defense of Zyprexa" in the remaining cases. "We continue to remain steadfast that there is no causal link between the atypicals and diabetes," said John Lechleiter, executive vice president of pharmaceutical operations at Lilly.

(Posted by: Tom Lamb)

6 responses to “Lilly Plans to Settle Most Zyprexa Legal Cases for $690 Million”

  1. Tom Lamb Avatar

    Here’s some more recent news about this Zyprexa settlement:
    **********
    Zyprexa users await settlement payments; 8,362 to receive checks related to side effects
    By Jeff Swiatek
    jeff.swiatek@indystar.com
    August 10, 2006
    http://www.indystar.com/apps/pbcs.dll/article?AID=/20060810/BUSINESS/608100379/1003/BUSINESS
    **********
    Thanks for reading Drug Injury Watch.
    Tom Lamb

  2. Kristin Wright Avatar
    Kristin Wright

    Is there still hope for retribution for patients not involved in original lawsuit?

  3. Daniel Haszard Avatar

    Zyprexa zenith to zonked
    On November 28, 2001, the Journal of the American Medical Association published a letter written by Dr. Elizabeth Koller, an FDA medical officer, Dr. P. Murali Doraiswamy, a Duke University psychiatrist warning that according to FDA’s MedWatch data, patients taking olanzapine (Zyprexa) were 10 times more likely to become diabetic than the general population. [JAMA Vol. 286 No. 20.]
    The black box warning was put up too late mates!
    At a glance,zyprexa was promoted ‘off label’ to uses that weren’t FDA approved.This opens up a can of worms for patients like myself who took it for PTSD for which it was ineffective and moreover gave me diabetes.
    It was Eli Lilly that manufactured,promoted and exaggerated the efficacy of it’s defective zyprexa product.
    Blaming my doctors or myself is like blaming the Supermarket vedor for a tainted brand name food product produced by a longtime trusted supplier.
    If i bought a can of General Mills Green Giant string beans that had botulism I would blame the Jolly Green Giant wouldn’t you?
    True,leaked documents don’t convey the ‘whole picture’ but what is compelling is that zyprexa is the 7th some say 5th largest drug sell in the world and Eli Lilly’s #1 drug sale by their own admission.
    This is for a drug that won’t get you “high” cost $2.50 a pill and only indicated for less than 1% of the population.
    Hello! Somebody in Lilly land is pushing zyprexa hard-Daniel Haszard

  4. Tom Lamb Avatar

    As regards the inquiry about new claims for legal compensation by users of Zyprexa who have developed diabetes or other blood sugar disorders: New lawsuits are still being filed against Eli Lilly. The earlier settlement only served to resolve some of the cases that had been filed previously. If need be, I can provide you with the names of some good law firms handling Zyprexa cases.
    Thanks for reading Drug Injury Watch.
    Tom Lamb

  5. Tina Avatar
    Tina

    I feel that everyone affected by this medication should be compensated . The reason for this statement is, some of us can’t lead normal lives anymore . We should not have to put up with problems caused by others . The people that don’t have to put up with this illness believe losing weight will make it go away.

  6. Michael Scavuzzo Avatar
    Michael Scavuzzo

    I was involved and compensated in the original class action against Lilly. The settlement at the time seemed fair enough however no one expected the cost of living with diabetes would skyrocket and in my case can no longer afford the cost.
    Is there or do you know of any way to reopen or bring further action?

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