Eli Lilly to Pay Louisiana $20 Million for Off-Label Marketing

Louisiana’s attorney general announced a $20 million settlement with Eli Lilly and Co., stemming from allegations that the manufacturer had engaged in off-label marketing of its anti-psychotic drug, Zyprexa.  While Zyprexa is approved only for use in adults to treat conditions such as schizophrenia and bipolar disorders, Eli Lilly allegedly promoted the drug for use in children and for other, unapproved purposes, such as treating depression, attention deficit disorder and sleep problems.

Thirteen states have filed lawsuits against Eli Lilly over similar allegations; Louisiana is the 11th state to settle.  Eli Lilly also reached a $1.4 billion settlement with the federal government in 2009, after it admitted marketing Zyprexa for the off-label use of treating dementia.

According to the state attorney general, about $17 million from the settlement will be paid into Louisiana’s general fund, while $3 million will be put toward the state’s Medicaid fund.