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Louisiana to Recieve $20 Million from Medical Fraud



Pharmaceutical maker Eli Lilly and Co will pay the state of Louisiana $20 million over allegations of marketing the anti-psychotic drug Zyprexa. Louisiana is one of 13 states that sued Eli Lilly for marketing a drug that was not approved by federal regulators.

Eli Lilly already paid $1.4 billion to the federal government in January 2009 after acknowledging its push of the drug Zyprexa for the treatment of dementia for the elderly. Federal regulators have only approved Zyprexa for treating psychological problems such as schizophrenia and bipolar disorders in adults.

According to allegations made in the most recent suit with Louisiana, Eli Lilly marketed the drug for use with children to treat depression, attention deficit disorder, sleeping problems, anger, and to stabilize moods.

“This settlement sends a clear message to pharmaceutical companies that improper and illegal marketing of drugs will not be tolerated in Louisiana,” Attorney General James “Buddy” Caldwell said in a statement.

$17 million of the settlement will go to the state’s general fund with the remaining $3 million going toward reimbursement of the state’s Medicaid fund.




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