The announcement that Eli Lilly & Company had reached a tentative settlement on over 8,000 claims alleging they were not properly informed about the risks of taking Zyprexa broke late Thursday night.The Company plans to pay up to $690 million to settle the claims.
Lilly CEO Sidney Taurel said in a written statement, "While we believe the claims are without merit, we took this difficult step because we believe it is in the best interest of the company, the patients who depend on this medication and their doctors."
Some 8,000 plaintiffs alleged the labels on Zyprexa did not adequately display the risk of huperglycemia and diabetes.
Lilly plans to take a $700 million charge in the second quarter to establish the settlement fund and cover other claims not in the agreement.
