Eli Lilly, Former Employee Settle Lawsuit Concerning Manufacturing Dispute

Eli Lilly And Co LLY has settled a lawsuit filed by a former employee, Amrit Mula, who alleged that she was wrongfully terminated after raising concerns about manufacturing practices and data falsification related to the diabetes drug Trulicity. 

The lawsuit, which had been ongoing, is now on the brink of resolution, pending the finalization of the agreement, as per an August court filing.

Mula, a former human resources officer, asserted that she had repeatedly alerted leaders at a New Jersey plant about various issues, including those concerning Trulicity and other biologic drugs. 

In response, Eli Lilly labeled Mula as a non-scientist and dismissed her allegations as "simply wrong."

The New Jersey facility in question has faced scrutiny from the FDA since 2019, when inspectors discovered the deletion of quality control data and inadequate audits. The facility also manufactured cancer medications and a COVID-19 therapy.

Inspectors later found additional problems, including discarding drug batches due to manufacturing errors and inadequate quality control investigations by the company. 

In a separate development, the U.S. Department of Justice (DOJ) initiated a criminal investigation in 2021 following a Reuters report detailing some of Mula's allegations. As of now, no charges have been filed.

Price Action: LLY shares are trading 0.98% higher at $549.76 premarket on the last check Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.