By Staff

(AXcess News) Reno - Drug maker Eli Lilly has agreed to a $1.4 billion settlement over its marketing campaign called "Viva Zyprexa!" which encouraged physicians to prescribe it to children, adolescents, and dementia patients.  The settlement is the largest recovery in a health care fraud investigation in U.S. history.

The settlement includes $800 million in civil damages to be paid to the States and $615 million as a result of criminal charges brought against the company for illegal marketing.

Eli Lilly and Company was sued for the unlawful off-label marketing of its anti-psychotic drug Zyprexa, which the company aggressively marketed for such unapproved uses such as treatment for depression, anxiety, irritability, disrupted sleep, nausea and even gambling.

California's Attorney General Edmund G. Brown Jr. said California's portion would amount to $112 million of the national lawsuit which was settled in October of last year, Brown's office said in a communication with AXcess News.

"This settlement means that Eli Lilly can no longer reap massive profits by aggressively marketing this drug for unapproved uses at the expense of state health care programs for seniors and the infirm," Attorney General Brown said. "California's Medi-Cal program will receive almost $112 million, which is more than welcome at a time when the state faces massive budget deficits."