Eli Lilly accused by Texas AG of bribing providers to push drugs

Anabelle Colaco
16 Aug 2025, 00:42 GMT+10

Texas Attorney General Ken Paxton has filed a lawsuit against U.S. pharmaceutical giant Eli Lilly, alleging the company engaged in an illegal scheme to pay kickbacks to healthcare providers to encourage prescriptions of its most profitable medications
According to Paxton’s office, the alleged scheme targeted drugs such as Mounjaro and Zepbound, GLP-1 medications used to treat diabetes and aid weight loss, with financial inducements designed to sway medical decision-making in the company’s favor
The lawsuit follows earlier legal action by Paxton’s office against insulin manufacturers, including Lilly, and pharmacy benefit managers

WASHINGTON, D.C.: Texas Attorney General Ken Paxton has filed a lawsuit against U.S. pharmaceutical giant Eli Lilly, alleging the company engaged in an illegal scheme to pay kickbacks to healthcare providers to encourage prescriptions of its most profitable medications.

According to Paxton's office, the alleged scheme targeted drugs such as Mounjaro and Zepbound, GLP-1 medications used to treat diabetes and aid weight loss, with financial inducements designed to sway medical decision-making in the company's favor.

"Big Pharma compromised medical decision-making by engaging in an illegal kickback scheme," Paxton said in a statement, adding that the case builds on previous efforts to hold drugmakers accountable for fraud and abuse.

The lawsuit follows earlier legal action by Paxton's office against insulin manufacturers, including Lilly, and pharmacy benefit managers (PBMs). That case claimed manufacturers inflated insulin prices and then funneled a significant, undisclosed share back to PBMs in exchange for preferential placement on drug formularies.

Eli Lilly denied wrongdoing, saying the new claims come from the same corporate whistleblower whose allegations have been dismissed by multiple courts and rejected by the federal government.

"We intend to vigorously defend against these allegations," a company spokesperson said, citing prior rulings that found the accusations lacked factual and legal merit.

Watch latest videos

News RELEASES

Publish news of your business, community or sports group, personnel appointments, major event and more by submitting a news release to Malaysia Sun.

More Information

null in null

Southeast Asia

Section

India’s Supreme Court orders ‘sheltering’ of stray dogs in New Delhi

NEW DELHI, India: On August 11, India's Supreme Court ordered New Delhi's civic authorities to immediately begin capturing 5,000 stray...

Organisers put off India Day event in Ireland after violent incidents

DUBLIN, Ireland: India Day celebrations in Ireland have been postponed after what organisers described as a spate of violent attacks...

Rice and small payouts offered for land in Trump golf resort deal

HUNG YEN, Vietnam: In Hung Yen province near Hanoi, farmers say they are being offered meager compensation, sometimes just a few thousand...

UAE expresses solidarity with Pakistan, conveys condolences over victims of rescue helicopter crash

ABU DHABI, 15th August, 2025 (WAM) -- The United Arab Emirates expressed its sincere condolences and solidarity with the Islamic Republic...

PM Modi honours bravery of Op Sindoor heroes, highlights "new normal" to combat Pak-based terrorism, says "blood and water will not flow together"

New Delhi [India], August 15 (ANI): Prime Minister Narendra Modi on Friday lauded the soldiers of Operation Sindoor for their swift...

"Trump only praising Pakistan...we have become friendless nation": Karnataka Minister Dinesh Gundu

Mangaluru (Karnataka) [India], August 15 (ANI): Karnataka Minister Dinesh Gundu Rao on Friday said that US President Donald Trump is...

Business

Section