Attorney General Ken Paxton Sues Eli Lilly Over Alleged Kickback Scheme

August 12, 2025 – Austin, TX — Texas Attorney General Ken Paxton has filed a lawsuit against pharmaceutical giant Eli Lilly, accusing the company of bribing medical providers to prescribe its high-demand medications, including Mounjaro and Zepbound, which are widely used for diabetes management and weight loss.

According to the lawsuit, Eli Lilly illegally offered incentives such as “free nurses” and reimbursement support services to healthcare providers in Texas. These perks were allegedly designed to influence prescribing behavior in favor of the company’s most profitable drugs.

Many of the prescriptions were billed to Texas Medicaid, leading to what Paxton’s office calls millions of dollars in fraudulent claims. The suit cites violations of the Texas Health Care Program Fraud Prevention Act, accusing Eli Lilly of undermining medical decision-making and misusing taxpayer dollars.

“Big Pharma compromised medical decision-making by engaging in an illegal kickback scheme,” Paxton said in a statement. “I will not stand by while corporations unlawfully manipulate our healthcare system to line their own pockets.”

This legal action is part of a broader effort by Paxton’s office to hold pharmaceutical companies accountable for fraud, abuse, and unethical marketing practices, particularly when taxpayer-funded programs like Medicaid are involved.