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Friday, January 17, 2020

Houston's county sues Eli Lilly over insulin prices, hires private attorneys to do so

Federal Court

By Marian Johns | Jan 8, 2020

Lilly

HOUSTON (Legal Newsline) – A Texas county is suing Eli Lilly, CVS Health, Express Scripts and others alleging they have created an insulin pricing scheme.

The County of Harris, Texas filed a complaint Nov. 21 in the U.S. District Court for the Southern District of Texas, Houston Division against Eli Lilly and Co., Express Scripts, CVS Health Corp. and others alleging violation of the Texas Free Enterprise and Antitrust Act, common law fraud, unjust enrichment and civil conspiracy. 

The plaintiff alleges that the defendants who manufacture insulin and the defendants who manage the pharmacy benefits for a large portion of people in the U.S. have worked together to create a pricing scheme that extracts "exorbitant profits from the pharmaceutical distribution chain." The plaintiff alleges this has resulted in an 1,000 percent price increase for insulin over the last decade. 

The plaintiff alleges it spends more money on diabetes medications than for any other and that in 2015, the amount it spent on diabetes medication increased more than 60 percent from 2014.

The plaintiff seeks monetary relief, a trial by jury, interest and all other appropriate relief. It is represented by Harris County Attorney Vince Ryan; Richard Schechter of the Law Offices of Richard Schechter PC in Houston; Joanne Cicala and Joshua Wackerly of The Cicala Law Firm PLLC in Dripping Springs, Texas; Debra Tsuchiyama Baker, Earnest Wotring, John Muir and David George of Baker Wotring LLP in Houston; and others.

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Houston Division of the Southern District of Texas

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