Texas sues Eli Lilly for allegedly bribing providers to prescribe its medications

WASHINGTON, Aug 12 (Reuters) - Texas Attorney General Ken Paxton on Tuesday sued U.S. drugmaker Eli Lilly LLY.N for allegedly "bribing" providers to prescribe its medications.

The attorney general's office said in a statement that the company bribed and illegally induced medical providers to prescribe its most profitable drugs, including the GLP-1 medications Mounjaro and Zepbound, used for weight loss and diabetes treatment.

"Big Pharma compromised medical decision-making by engaging in an illegal kickback scheme," Attorney General Paxton said.

The lawsuit builds upon Attorney General's previous legal action to hold drug manufacturers accountable for fraud and abuse, the statement added.

Last year, Paxton had sued insulin manufacturers, including Lilly and pharmacy benefit managers (PBMs), alleging that manufacturers artificially raised the prices of insulin and then paid a significant, undisclosed portion back to the PBMs for preferential treatment in return.

Lilly said the claims stem from the same corporate relator whose allegations have been dismissed by multiple courts and the federal government. "We intend to vigorously defend against these allegations," a spokesperson said, citing prior rulings that found the accusations lacked factual and legal merit.