Texas AG Ken Paxton Takes on Eli Lilly in Alleged Bribery Scandal

Texas Attorney General Ken Paxton has initiated legal action against U.S. pharmaceutical company Eli Lilly, accusing it of bribing healthcare providers to prescribe its medications. This lawsuit targets the company's alleged kickback scheme involving its GLP-1 drugs, Mounjaro and Zepbound, commonly used for weight loss and diabetes.

According to Paxton's office, such practices compromise the integrity of medical decision-making, highlighting a pattern of alleged fraudulent activity by major drug manufacturers. This move follows an earlier lawsuit against insulin producers, where similar allegations of price manipulation and rebates to pharmacy benefit managers were made.

Eli Lilly, however, stated that accusations were dismissed in previous court rulings and intends to defend against the current allegations. The company termed earlier legal claims as lacking both factual and legal merit, suggesting the suit is based on previously rejected claims by a corporate relator.

(With inputs from agencies.)