Eli Lilly announced a $15 million settlement with the State of Alaska, which sued the company for allegedly withholding information about Zyprexa side effects.
Lilly admitted no wrongdoing. In a statement, Robert Armitage, SVP and general counsel, said: “While we had a strong defense, we agreed with the State that the best result for everyone is an amicable resolution. A trial always involves significant time and resources, especially a two-phase trial like this one that posed additional legal hurdles. A settlement helps us get back to what we want to focus on as a company: developing important new medications through research and partnerships with doctors and patients.”
In addition to the $15 million, Alaska secured an agreement 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 Wall Street Journal reported that before the trial started, Lilly offered a $2 million settlement and the state sought close to $200 million.