The U.S. Supreme Court on Monday refused to consider a class-action suit led by union health and pension funds against Eli Lilly and Co. over the drugmaker’s marketing tactics and prices for the prescription drug Zyprexa.
The plaintiffs, including lead plaintiff, Sergeants Benevolent Association Health and Welfare Fund, New York, and UFCW Local 1776 pension fund, Plymouth Meeting, Pa., sued Eli Lilly for what they claimed was misrepresentation about the efficacy and side effects of the drug.
The assets sizes of the two funds couldn’t be learned by press time.
In 2010, the U.S. Court of Appeals for the 2nd Circuit in New York overruled a lower court’s approval of the class action, which led to the appeal to the Supreme Court. The appeals court had left open the possibility of plaintiffs filing individual claims in lower courts.
In January 2009, Lilly pleaded guilty to a misdemeanor charge and paid $1.4 billion in criminal and civil penalties to settle charges by the Justice Department of misleading and false claims for the drug, said Stephen Sheller, the Philadelphia lawyer who represented the whistle-blowers in the unrelated Medicare and Medicaid fraud, in an interview.
Union officials and attorneys representing the plaintiffs and respondents in the Supreme Court case did not return calls by press time.