The Zyprexa Chronicles: Thoughts On Alaska Settlement

I know more than a few readers are disappointed in the $15 million settlement reached between Alaska and Lilly on Tuesday. Yes, the settlement was a bit of a surprise, especially this late in the game as the New York Times notes, but Lilly's pattern is to settle these cases. It's cheaper than a jury verdict and allows sales reps to continue to spread the good word about the company's drug. It also allows Lilly's lead attorney, Nina Gussack, to say things like:

"The agreement included no admission of wrongdoing by Lilly, which is based in Indianapolis.

"Nina Gussack, who headed the Lilly trial team, called the settlement a 'very positive resolution.'

"'It certainly, in light of the state's initial views about what this case was valued at, represents an extraordinary resolution for Lilly,' Gussack said.

"Court-ordered mediation had been begun before jurors heard opening statements March 6 and culminated with the settlement Tuesday night. The company was confident in the defense it had presented so far, Gussack said, and the state likely recognized the value of Zyprexa and how it continues to be prescribed.

"'I think against that background, resolving cases for relatively modest amounts, given the history here, is always a good thing for litigants,' she said."

I don't know what pattern this will set for the other nine states currently suing Lilly or for the 25 or so states pondering a multistate lawsuit or for the feds. I'd assume that Lilly's lawyers would get back to negotiating very hard with the feds, but beyond that who knows. My hunch is they are going to settle as many of these claims as possible.

One thing is clear: there are simply too many lawsuits against Lilly for the Zyprexa story to go away any time soon.

Stay tuned.