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Whistleblowers' Complaints Lead Eli Lilly to Pay $800 Million to Settle Civil Medicaid Fraud Charges, According to Berg & Androphy
Date:1/15/2009

HOUSTON, Jan. 15 /PRNewswire/ -- The $800 million settlement that Eli Lilly and Company (NYSE: LLY) has agreed to pay to settle civil False Claims Act charges related to allegedly false or fraudulent marketing, promotion and sale of its drug Zyprexa can be traced to the courageous stands taken by employee whistleblowers, according to the Berg & Androphy law firm.

The company's settlement with the federal government, which also includes a guilty plea in a separate criminal action, covers allegations that occurred between September 1999 and December 2005 related to practices prohibited by the federal Food and Drug Administration (FDA) such as the distribution of "misbranded" drugs.

In March, 2005, a whistleblower represented by Joel M. Androphy and Sarah Frazier, of Berg & Androphy in Houston, filed a qui tam action in the U.S. District Court for the Eastern District of N.Y. ("United States v. Eli Lilly," Case No. CV051471) that was transferred to the Eastern District of Pennsylvania (Case No. CV-06-2909).

The whistleblower represented by Berg & Androphy complained of Lilly's illegal marketing, promotion and sale of Zyprexa to children and in higher- than-recommended dosages to adults. The whistleblower also alleged that as part of the marketing and promotional schemes, Lilly encouraged physicians by means of monetary payments.

Mr. Androphy, who authored the book "Federal False Claims Act and Qui Tam Litigation" (Law Journal Press), said, "Our whistleblower client, who resides in New Jersey, is no longer in the pharmaceutical business, but he is proud of the stand he took in this case. He and the eight other whistleblowers who filed lawsuits deserve credit for exposing the conduct alleged in the settlement agreement."

Of the total settlement, $438 million will go
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SOURCE Berg & Androphy
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