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The state of Alaska is bringing action against Eli Lilly on the claims of violation of Alaska’s Unfair Trade Practices and Consumer Protection Act, failure to warn, design defect, negligence, and fraud and negligent misrepresentation. Alaska is seeking to recover the funds its Medicaid program spent treating the side effects of Eli Lilly’s drug Zyprexa, claiming that Eli Lilly failed to properly report the fact that use of the drug can lead to hyperglycemia and diabetes to the FDA, instead reporting that it can cause “weight gain.” The state asserts that Eli Lilly also failed to inform doctors of the risk of these side effects and instructed its representatives to deny the link between Zyprexa and diabetes. In 2003, the FDA mandated that Zyprexa includes warnings about hyperglycemia and diabetes.
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