In an effort to solicit members for a class action, two law firms that represent shareholders in class actions against publicly traded companies are investigating certain officers and directors of Eli Lilly. The investigations focus on possible breaches of fiduciary duties by the board of directors and/or officers of the company in connection with allegations that Eli Lilly may have violated the FCPA.
The investigations follow Eli Lilly’s recent disclosure in an SEC filing that it is in advanced talks with the SEC to resolve an investigation into possible FCPA violations.
Eli Lilly, the maker of the anti-psychotic drug, Zyprexa, was notified in 2003 that the SEC was investigating whether the Polish divisions of certain drug makers, including Eli Lilly, had violated the FCPA. The investigation has since widened to include Eli Lilly’s activities in other countries. Eli Lilly disclosed that subpoenas have been issued by the SEC for documents. The DOJ is also investigating Eli Lilly and has sought information about its activities in certain countries.