Takeda, Eli Lilly Face Revived RICO Class Suit Over Actos Labels

Takeda Pharmaceuticals Co. and Eli Lilly & Co. will face revived class claims that they conspired to hide the link between their diabetes drug Actos and bladder cancer after the Ninth Circuit held Dec. 3 that the plaintiffs have standing to sue.

The Ninth Circuit had never addressed whether patients and insurance companies adequately allege proximate cause under the Racketeer Influenced and Corrupt Organizations Act when they argue they wouldn’t have paid for a drug if its makers had disclosed a known safety risk.

The court joined the First and Third Circuits in answering the question in the affirmative. The ...