The U.S. Supreme Court on Monday rejected an appeal that sought to revive class-action claims against Eli Lilly & Co. (LLY) involving its antipsychotic drug Zyprexa. Insurers and other benefits providers alleged they overpaid for Zyprexa as a result of misrepresentations by Lilly about the safety and efficacy of the drug, and because Lilly aggressively promoted the drug for uses not approved by the Food and Drug Administration. The plaintiffs were seeking to revive their case after the New York-based 2nd U.S. Circuit Court of Appeals ruled last year that a trial judge was wrong to allow the class action to proceed. The appeals court ruled the plaintiffs’ claims were too attenuated because there wasn’t a direct link between the prices they paid for the blockbuster drug and Lilly’s alleged marketing misrepresentations.
