Securities Class Action Lawsuit Filed Against Eli Lilly And Company
A securities class action lawsuit has been commenced in the United States District Court for the Eastern District of New York on behalf of all persons who purchased or otherwise acquired the publicly traded securities of Eli Lilly and Company between March 28, 2002 and December 22, 2006.
The class action alleges that the company and certain of its officers and directors violated Federal Securities laws by making misleading statements about Zyprexa, a drug it produces and markets for the treatment for schizophrenia.
Defendants contended that Zyprexa did not cause diabetes-related side effects. Once the publicly available clinical data rendered this position untenable, defendants argued instead that Zyprexa did not cause more side effects than its competitors. Eventually, additional clinical data showed that, in fact, Zyprexa does cause such side effects and to a greater extent than its competitors.
These revelations sharply curtailed the sales growth of Zyprexa and resulted in thousands of product liability lawsuits against Lilly and hundreds of millions of dollars in settlements. It has recently come to light that defendants intentionally suppressed and misrepresented data showing that Zyprexa causes weight gain, high blood sugar, and diabetes in a series of articles in The New York Times which excerpted internal Lilly documents detailing defendants’ deception.
The documents show that defendants intentionally misrepresented the side effects of Zyprexa. In the five trading days during which the series of articles was published, the price of Lilly’s stock declined almost 6%.
If you are a member of the class, you may, no later than June 1, 2007, request that the Court appoint you as lead plaintiff of the class.
Filed under Class Action, General Law
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