Eli Lilly accuses church bishops, businessmen of fraud in Trulicity drug rebate scheme

Eli Lilly disclosed in federal court that an alleged rebate fraud scheme cost the company more than $200 million. The lawsuit says several bishops and a Church of God in Christ leader were involved in the plot. The disclosure is materially negative for Lilly, though the market impact is likely limited to the individual stock rather than the broader sector.

Analysis

Eli Lilly disclosed in federal court that an alleged rebate fraud scheme cost the company more than $200 million. The lawsuit says several bishops and a Church of God in Christ leader were involved in the plot. The disclosure is materially negative for Lilly, though the market impact is likely limited to the individual stock rather than the broader sector.