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Ninth Circuit Upholds Class Action Against Takeda and Eli Lilly

The legal battle surrounding the diabetes medication Actos (pioglitazone) continues to unfold as the U.S. Court of Appeals for the Ninth Circuit has affirmed a class certification order in a landmark case that has garnered attention for over a decade. This ruling marks a significant milestone in the case of Painters & Allied Trades District Council 82 Health Care Fund v. Takeda Pharmaceutical Company Limited. The certification allows third-party payers to seek damages under the Racketeer Influenced and Corrupt Organizations (RICO) Act against Takeda and Eli Lilly, with potential damages anticipated to exceed a staggering $7 billion.

The Foundation of the Case

At the heart of the case lies serious allegations that Takeda and Eli Lilly conspired to hide the risks of bladder cancer associated with Actos. This deception reportedly spanned more than a decade, intentionally putting millions of patients, particularly vulnerable diabetics, at risk of exposure to a carcinogen without informed consent. Internal documents have indicated that both companies were aware of the potential dangers as early as 1999, yet continued to market the drug until the FDA mandated a warning label in 2011. Following the order, sales for Actos plummeted by 80%, exposing the consequences of the alleged fraud.

A Turning Point in Pharmaceutical Accountability

The Ninth Circuit's ruling is unprecedented as it is the first national RICO class action lawsuit certified against a significant pharmaceutical firm, defying challenges raised by industry defendants and amici curiae. The appellate court acknowledged that during the certification process, the lower court had performed a 'rigorous analysis' and met the predominance requirements essential for class action status. This affirmation has positioned the plaintiffs to finally present their case to a jury, which could have considerable implications for pharmaceutical practices.

Insights from Legal Counsel

R. Brent Wisner, managing partner at Wisner Baum LLP—the lead counsel for the plaintiffs—expressed optimism about moving towards a trial. He articulated that the evidence supporting their claims is unequivocal, stating, "The class was deceived into purchasing billions of dollars of Actos by Takeda and Lilly. Their actions blatantly violated civil RICO and compromised the health of millions of diabetics. Despite the long journey, the implications of our case could reshape accountability within the pharmaceutical industry."

What Lies Ahead

With the class certification now affirmed, anticipation builds for a potential trial date in 2026. The goal is to verify the claims against the pharmaceutical giants and recover treble damages under the RICO Act’s stringent provisions. Legal experts herald the decision as a powerful precedent, reflecting a growing momentum towards holding large corporations accountable for deceptive practices that jeopardize public health.

Conclusion

The case against Takeda and Eli Lilly serves as a crucial reminder of the responsibilities that pharmaceutical companies have towards patients and the broader healthcare system. As the class action prepares for trial, it holds the potential to not only provide justice for those affected but also instigate significant changes within the pharmaceutical industry’s operational ethos and ethical standards.