INVESTOR NOTICE: MURRAY, FRANK & SAILER LLP HAS FILED A SHAREHOLDER CLASS ACTION AGAINST ELI LILLY AND CO.- LLY
New York, NY April 12, 2007 - Murray, Frank & Sailer LLP has filed a class action on behalf of shareholders who purchased or otherwise acquired the securities of Eli Lilly and Company (“Lilly” the “Company”) (NYSE: LLY) between March 22, 2002 to December 22, 2006, inclusive, (the "Class Period").
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The complaint charges Lilly and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Lilly is in the business of developing and marketing pharmaceuticals.
Lilly produces and markets Zyprexa, a drug treatment for schizophrenia, among other things. Zyprexa is by far Lilly's largest-selling drug, with sales of $4.3 billion in 2006 alone. The complaint alleges that at the beginning of the Class Period, defendants contended that Zyprexa did not cause diabetes-related side effects. Once the publicly available clinical data rendered this position untenable, defendants argued instead that Zyprexa did not cause more side effects than its competitors. Eventually, more and more clinical data showed that, in fact, Zyprexa does cause such side effects and to a greater extent than its competitors. These revelations sharply curtailed the sales growth of Zyprexa and resulted in thousands of product liability lawsuits against Lilly and hundreds of millions of dollars in settlements. It has recently come to light that defendants intentionally suppressed and misrepresented data showing that Zyprexa causes weight gain, high blood sugar, and diabetes in a series of articles in The New York Times which excerpted internal Lilly documents detailing defendants' deception. The documents show for the first time that defendants intentionally misled patients, doctors, and investors about the side effects of Zyprexa. As a result of these revelations, the price of Lilly's stock declined almost 6% in the five trading days during which the series of articles was published. The members of the proposed class invested in Lilly securities unaware that defendants' fraud had artificially inflated the prices of those securities. When the truth was finally revealed, those investors lost many millions of dollars as a result of defendants' fraud.
If you are a member of the class, you may, no later than June 1, 2007, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative, chosen by the Court, who acts on behalf of other class members in directing the litigation.
Murray, Frank & Sailer LLP and its predecessor firms have devoted its practice to shareholder class actions and complex commercial litigation for more than fifteen years and have recovered hundreds of millions of dollars for shareholders in class actions throughout the United States. You may visit our website at www.murrayfrank.com. If you would like to discuss this action, this announcement, or your rights and interests, please contact plaintiff’s counsel Bradley P. Dyer of Murray, Frank & Sailer LLP.
Murray, Frank & Sailer LLP
Bradley P. Dyer
Fax: (212) 682-1892
Email: [email protected]