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Lilly to pay Idaho $13M in drug settlement

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Idaho is getting $13 million as part of a settlement reached with Indianapolis-based Eli Lilly and Co. over its marketing of an anti-psychotic drug.

Attorney General Lawrence Wasden announced the deal Tuesday, calling it the largest financial settlement in a legal case since Idaho and other states ended a lawsuit with tobacco companies in 1998.

Idaho sued Eli Lilly over allegations the company used deceptive marketing strategies for the drug Zyprexa. The state accused the company of failing to warn doctors of the drug's serious side effects, a move that caused significant costs to the state's Medicaid program.

Idaho also claimed Zyprexa, approved for severe psychological disorders, caused consumers to gain weight, leading to other problems like diabetes.

Wasden said the $13 million will offset losses incurred by Idaho's Medicaid program.

Zyprexa, which boasts $4.7 billion in annual sales, has cost Lilly lots of legal trouble, sparking thousands of patient lawsuits as well as investigations by federal and state governments.

In January, Lilly agreed to pay $1.42 billion to federal and state governments to resolve a lawsuit over Zyprexa marketing brought by the U.S. Justice Department. Some states, including Idaho, did not join that settlement.

More than 30 states sued Lilly over Zyprexa. The only case that went to trial was in Alaska, which ended with a settlement that calls for Lilly to pay the state $15 million.

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  • 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.
    We put Lilly products in our babies they really need to clean up their act and quit with the white wash.

    Eli Lilly Zyprexa can cause diabetes
    I took Zyprexa a powerful Lilly schizophrenic drug for 4 years it was prescribed to me off-label for post traumatic stress disorder was ineffective costly and gave me diabetes.
    This is a powerful drug that can damage a young person physiologically for life.
    Please take with caution and learn as much as you can about side effects.

    Daniel Haszard

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