Texas Sues Lilly Over ‘Illegal Kickbacks’

Share

Texas attorney general Ken Paxton has filed suit against Eli Lilly, charging that the company bribed and illegally induced healthcare providers to prescribe 14 of its most profitable drugs, including the GLP-1 medications Mounjaro and Zepbound (both tirzepatide).

A statement (contains a link to the suit) from Paxton’s office says the illegal incentives offered by Lilly to enhance profits included “free nurses” and reimbursement support services.

“These inducements were designed to steer providers toward prescribing Eli Lilly’s drugs,” the statement says. “In many cases, these prescriptions were covered by Medicaid, resulting in millions of dollars in claims to Texas Medicaid that were tainted by Eli Lilly’s illegal marketing and quid pro quo arrangements in violation of the Texas Health Care Program Fraud Prevention Act.”

The suit says that Lilly provided and/or had assistance from third parties in providing in-kind remuneration to providers in the form of patient-care services (“free nurses”) and reimbursement support services (“support services”). It says the case is not about the drugs’ effectiveness, but rather about whether Lilly violated Texas law by providing remuneration or items of value to induce providers to prescribe its drugs over others on the market.

Read more