ELI LILLY, TAKEDA MUST FACE RACKETEERING CLAIMS OVER ACTOS DIABETES DRUG, JUDGE RULES

A federal judge in California has certified a class action lawsuit against Eli Lilly (NYSE:LLY) and Takeda (NYSE:TAK), based on claims that the pharmaceutical giants broke federal racketeering law in marketing the diabetes drug Actos while hiding its cancer risks.

At the federal court in Santa Ana, California, U.S. District Judge John Holcomb certified the case for third-party payers who reimbursed for Actos between July 1, 1999, and Sept. 17, 2010, according to a May 24 opinion unsealed on Monday.

The judge named Minnesota-based Painters and Allied Trades District Council 82 Health Care Fund as the class representative, Bloomberg reported.

The ruling marks the first pharmaceutical class action suit certified under the federal civil Racketeer Influenced and Corrupt Organizations Act (RICO), R. Brent Wisner, an attorney for Painters, said.

Lilly (LLY) said it expects to appeal the ruling. A Takeda (TAK) spokesperson declined to comment.

“Lilly feels confident that plaintiff’s claims lack merit, and we will continue to vigorously defend this matter,” the Indiana-based drugmaker said in a statement.

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2023-06-07T19:59:23Z dg43tfdfdgfd