Lawsuit against Eli Lilly over Zyprexa dismissed

NEW YORK U.S. District Judge Jack Weinstein has dismissed a lawsuit that claimed that Eli Lilly defrauded shareholders by hiding information about the health risks and marketing of its schizophrenia and bipolar disorder drug Zyprexa, according to Bloomberg.

Weinstein said that the claim was filed too late because, federal law requires that shareholder lawsuits be brought within two years of when investigators should know they have a claim.

The investors, who bought Lilly stock between August 2002 and December 2006, claimed the drugmaker hid information that Zyprexa can cause diabetes and other diseases and marketed the drug for uses not approved by the Food and Drug Administration. They said they lost money when the alleged fraud became public and Lilly shares fell.