Zyprexa Settlement

Zyprexa lawsuits settled for as much as $690 million

- June 10, 2005

Eli Lilly and Co. said yesterday that it had reached an agreement to settle about 75 percent of lawsuits involving its schizophrenia drug Zyprexa for as much as $690 million.

The majority of the Zyprexa lawsuits contend that the company did not adequately display warnings about the drug's possible effects prior to September 2003. Lilly said it would record a pretax charge of at least $700 million in its second quarter to settle claims that it did not warn consumers that the drug could cause diabetes-like symptoms.

The company said information on Zyprexa labels had listed the risk of high blood sugar and diabetes as possible Zyprexa side effects since 1996. Lilly would establish a fund, according to the agreement, not to exceed $690 million for plaintiffs who agree to settle their claims.

Though the company said an exact number of claimants covered by the settlement was unknown, it estimated about 8,000, or 75 percent, of outstanding claims. Lilly maintains all the Zyprexa lawsuit claims are without merit and it plans on continuing to vigorously defend its drug in the remaining cases.

Lilly's chairman, president and chief executive officer, Sidney Taurel, said the company agreed to the Zyprexa settlement to reduce “significant uncertainties” regarding Zyprexa lawsuits.