UFCW Local 1776 & Participating Employers Health & Welfare Fund v. Eli Lilly & Co.
Institutional plaintiffs, primarily third-party payors, filed a class action lawsuit against Eli Lilly and Company. They alleged that Lilly fraudulently marketed its antipsychotic drug, Zyprexa, by misrepresenting its safety and efficacy, downplaying serious side effects like weight gain and diabetes, and promoting off-label uses. The lawsuit claimed these actions led to overpayments for Zyprexa prescriptions. The court certified a class of third-party payors on federal Racketeer Influenced and Corrupt Organizations Act (RICO) claims, specifically for alleged overpricing of Zyprexa during the period of June 20, 2001, to June 20, 2005. Individual payor claims were denied class certification due to potential conflicts of interest, and state consumer protection claims were deferred. The court's decision emphasized that common questions of law and fact predominated, making a class action a superior and manageable method for adjudication.