Alaska has settled its lawsuit with Eli Lilly for $15 million. The settlement occurs after two in a series of three closely watched Supreme Court opinions dealing with whether the FDA is the only watchdog the public needs over the drug and device manufacturers. Alaska filed the lawsuit in March 2006 lawsuit alleging the state and healthcare providers were insufficiently warned about possible side effects of Zyprexa, Lilly’s $5 billion bestseller, relating to weight gain, high blood sugar and diabetes, causing harm to the state's Medicaid recipients and increased costs.
Alaska filed its claim under the state’s Unfair Trade Practices and Consumer Protection Act. The trial began on March 6th before a jury and Anchorage Superior Court Judge Mark Rindner. With the jury out of the courtroom, the judge announced that without lawsuits like this one, claims that drugs cause health problems "might well go unaddressed" and that the evidence presented by the state had established that the FDA "isn't capable of policing this matter."
Alan Milstein
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