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news.Alaska attorney general Talis Colberg and Eli Lilly and Company have announced a settlement of the lawsuit filed by the State of Alaska over the use of Zyprexa by the State's Medicaid program.
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The settlement will include payment by Lilly of $15 million plus a term that will ensure that Alaska is treated as favorably as any other state that may settle with Lilly in the future over similar claims. The agreement involves no admission of wrongdoing on Lilly’s part.
The March, 2006 lawsuit claimed the State and healthcare providers were insufficiently warned about possible side effects of Zyprexa relating to weight gain, high blood sugar and diabetes, causing harm to the State’s Medicaid recipients and increased costs to the State. The lawsuit asked that Lilly pay the State for those costs and pay civil penalties under the Alaska Unfair Trade Practices and Consumer Protection Act.
Robert Armitage, senior vice president and general counsel at Lilly, said: “We believe this settlement is in the best interest of the company, the State, and, importantly, of the patients, families and healthcare professionals for whom Zyprexa is an important treatment option.”