Report: Eli Lilly Faces $4 Billion More To Settle Zyprexa Cases

Much as I've been saying since last summer, the Bloomberg wire service is reporting today that Lilly faces at least $4 billion more in settlement monies to shut down the remaining lawsuits brought against the company over its handling of Zyprexa, its $4 billion-plus selling antipsychotic. The remaining cases involve unions, insurance companies and pension funds who've sued the company in federal court in New York State plus remaining lawsuits by 12 states who were not part of last week's $1.42 billion settlement between Lilly and the feds plus about 30 other states.

Adding $4 billion to the $2.7 billion the company has already paid out would bring the total to $6.7 billion, or more than the $4 billion-plus that Merck is paying out over Vioxx, which is the current record holder for pharma settlements.

"Not part of the settlements were suits by 12 states and a class-action case brought by pension funds, insurance companies and labor unions seeking as much as $6.8 billion. Two state trials are set for this year. Settling all 12 might cost the company another $2 billion, and going to trial would cost more, said Patrick Burns, a spokesman for Taxpayers Against Fraud.

"'The total nut on this could be four or five billion' if the company settles, Burns, who tracks the suits, said in an interview. 'Their cheapest way of clearing the decks is to settle.'

"Burns’s Washington-based group promotes lawsuits to fight fraud against the U.S. government."

Whether Lilly ends up settling is another matter entirely, but the company has blustered before about meritless Zyprexa cases only to later settle them. Lilly had this to say to Bloomberg:

"'We believe their claims are without merit, and that’s why we’re prepared to go to court,' Marni Lemons, a spokeswoman for Lilly, said. She wouldn’t comment on how much more Lilly may spend to settle suits."

So we shall see. Hopefully, these cases will be wound up sometime this year.