Texas Sues Eli Lilly For Alleged Kickback Scheme Involving Mounjaro, Zepbound

Texas Attorney General Ken Paxton has filed a lawsuit against Eli Lilly and Co. (NYSE:LLY), accusing the pharmaceutical giant of bribing medical providers to promote its most profitable drugs, including the widely used GLP-1 medications Mounjaro and Zepbound for diabetes and weight loss.

Paxton alleges the company’s conduct violated state fraud prevention laws and defrauded taxpayers through improper Medicaid claims.

According to the complaint, Eli Lilly provided illegal incentives to healthcare providers in Texas, such as “free nurses” and reimbursement support services, to steer prescriptions toward its products.

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These inducements allegedly compromised medical decision-making and resulted in millions of dollars in Medicaid claims for prescriptions tainted by unlawful marketing practices.

The lawsuit filed on Tuesday asserts that Lilly’s ...