Most States Reach Tentative Settlements in Zyprexa Lawsuits

Nearly all the states suing Eli Lilly & Co. over the antipsychotic Zyprexa have reached agreements to settle the cases, with only some details of the settlement terms still to be hammered out.

Zyprexa has been linked to reports of users gaining weight, developing diabetes, hypertension, and other related diseases, which states allege have strained funding for their Medicaid programs. The lawsuits seek to force Eli Lilly to reimburse the states for their costs of treating Zyprexa-related injuries.

At a court hearing this week, it was revealed that all but four of the 12 states suing Lilly over Zyprexa have reached settlements to end the cases. The terms of the settlements are confidential and depend on the costs each state has paid out for Zyprexa medical costs, but West Virginia reportedly will receive $22.5 million, according to a report in the West Virginia Record.

Connecticut, Idaho, Louisiana, Minnesota, Montana, New Mexico, Utah, and West Virginia reportedly have settled with Eli Lilly. The states of Arkansas, Mississippi, Pennsylvania, and South Carolina have yet to reach agreements to settle their individual suits against the drug company. South Carolina’s case is set to go to trial beginning October 5, according to the Record.

Eli Lilly previously agreed to pay $62 billion to settle Zyprexa-related consumer protection claims from 33 other states. That’s on top of the $1.4 billion the company also has paid to settle federal civil and criminal claims accusing the company of illegally promoting off-label uses of Zyprexa.

Zyprexa Linked to Serious Side Effects

Zyprexa, the brand name for the generic drug olazapine, was approved by the Food and Drug Administration in 1996. It belongs to a class of newer antipsychotic medications called atypical antipsychotics, which are commonly prescribed to treat the symptoms of schizophrenia, bipolar disorder, and psychotic depression.

It is one of the most popular drugs in its class and has been prescribed to 20 million people worldwide. In addition to its approved uses, many physicians prescribe Zyprexa for treatment of off-label disorders such as anxiety and panic disorders and post-traumatic stress disorder.

Zyprexa has been linked to a high incidence of diabetes, hyperglycemia, pancreatitis, and other blood sugar disorders. Many Zyprexa patients have complained of gaining weight and developing diabetes soon after beginning the medication.

The drug was marketed by Lilly as having fewer motor side effects (such as tardive dyskenisia) than older antipsychotics such as Haldol, but Zyprexa has turned out to be dangerous for many people on the drug.

The FDA warned in 2005 that Zyprexa and other similar drugs in the same class of antipsychotics can cause premature death in elderly patients with dementia-related psychosis.

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