Until Lilly can put an end to all this internal fighting, my suggestion is stay far, far, away from this stock.
Eli Lilly should not be upsetting its employees right now with this Race Discrimination suit. Most likely if there is one smoke and fires burning in one product in promoting it for unapproved uses chances are there are in many others.
It is clear by making enemies of its employees Lilly may ultimately pays a much higher price than this class action lawsuit. As the news reports it has been “upset employees who blow the whistle on the company’s illegal practices and as I understand it a good portion of the employees in this race discrimination lawsuit are sales folks.
The state of Wisconsin will get $6.9 million from Eli Lilly & Co. as part of a $1.42 billion settlement of an investigation into alleged improper marketing of its antipsychotic drug Zyprexa, the state Department of Justice said Thursday.
The settlement stems from a federal probe that had investigated charges into whether Eli Lilly played down side effects of the drug, which was approved by the FDA exclusively for the treatment of bipolar mania and schizophrenia, and promoted it for unapproved uses.
While doctors can prescribe a drug for ailments not listed on its label, companies are not allowed to promote off-label use.
Fort Lauderdale attorney Gary Farmer Jr. represented six whistle-blowers who originally brought the suit against Eli Lilly, and will share in 18 percent of the federal and qualifying states’ share of the recovery, which totals more than $100 million.
According to this article the big pay off is in whistle blowing.
The inside word is multiple new complaints for race discrimination against Lilly are being filed nationwide. These employees appear to be very upset. The smart move sounds like Lilly should do everything within its power to stop this train as quickly and quietly as possible. It does not sound like the express. Most likely it will stop everywhere it can before reaching its final destination picking up everything in its path.
I wouldn’t take investment advice from mefree.49 who seems to be a certifiable wacko obsessed with imagined clandestine racist bigotry at Lilly which in truth is very far from the reality. See mefree.49's other posts…
Lilly’s recent quarter loss is attributed to a one time FDA fine for off label promotion of Zyprexa. In terms of future investment, who knows. Lilly will likely do as well or better than most pharmas down the road. The industry in general is hurting due to shrinking pipelines of new drugs, health care reform, and increasing governmental regulation.