3rd-Party Payor Class Nixed In Lilly Zyprexa Appeal

Law360, New York (September 10, 2010, 6:51 PM ET) -- A federal appeals court reversed an order Friday that granted class certification to a group of insurers, labor unions and pension funds that say they overpaid for the antipsychotic drug Zyprexa given that Eli Lilly & Co. didn't reveal the drug's adverse side effects.

A three-judge panel of the U.S. Court of Appeals for the Second Circuit ruled that the plaintiffs had failed to demonstrate that Lilly's alleged misrepresentations regarding Zyprexa were the proximate cause of injuries to third-party payors.

“The TPP plaintiffs draw a chain...
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