The U.S. District Court for the District of New Jersey dismissed certain civil fraud claims against Eli Lilly & Co. and other drugmakers. The claims related to alleged insulin price-fixing.
The ruling specifically barred health benefit managers and trusts from pursuing civil claims. These claims were filed under the Racketeer Influenced and Corrupt Organizations (RICO) Act.
The court based its decision on the "indirect purchaser rule." This rule stipulates that the plaintiffs did not purchase the drugs directly from the manufacturers. Instead, they reimbursed their members for the costs.
This outcome represents a favorable development for Eli Lilly in the broader, ongoing litigation over insulin pricing.