Mississippi Accuses Drugmaker Eli Lilly of Medicaid Fraud

By Elizabeth Rhein

Published on August 04, 2006

Currently, Zyprexa is approved by the Food and Drug Administration only to treat bipolar disorder and schizophrenia. The Mississippi lawsuit alleges that Eli Lilly urged doctors in the state to prescribe Zyprexa for so-called “off-label" uses, such as for treating mood swings, sleeping problems, and anxiety.

The lawsuit claims Eli Lilly marketed the drug improperly in Mississippi because the state’s Medicaid program does not have a tracking system for drugs given for off-label purposes. In addition to drastically increasing the amount of Medicaid dollars paid out to Eli Lilly, the dishonest marketing tactics may have caused patients to become sick from the drug. The suit claims that these additional illnesses caused further cost to the Medicaid program.

Mississippi is asking for damages of $30 million to cover the cost of the illegitimate prescriptions. The state will also be seeking punitive damages, litigation costs, and civil penalties.

Eli Lilly has not yet responded to the charges filed, but has up to 30 days to do so.

Comment on this article →