Supreme Court backs Lilly in class action for overpricing of antipsychotic Zyprexa

VIA Fierce Pharma:

"The group of plaintiffs--including pension funds, unions and insurers--had been seeking $6.8 billion, saying Lilly's improper marketing induced them to spend more on the antipsychotic drug than they would have otherwise.

The plaintiffs sued on behalf of thousands of third-party payers, claiming that they overpaid for Zyprexa because Lilly aggressively promoted the drug for off-label uses, and the company misrepresented the drug's efficacy and safety. A trial judge allowed the class action, but a U.S. circuit court stopped the suit cold, saying the plaintiffs had shown no direct link between the prices they paid for Zyprexa and Lilly's alleged mismarketing."

AND

"The Supreme Court has effectively sided with the appeals panel. Without commenting on the claims themselves, the justices said the case didn't fit the requirements for a class action. They ordered the trial judge to consider whether the individual plaintiffs--which include Sergeants Benevolent Association Health and Welfare Fund--can pursue their claims individually."


Bloomberg story