Alaska is the first of nine states to sue Eli Lilly, manufacturer of Zyprexa, in a case that has wide ranging implications. Allegations that the company hid information about adverse side effects, such as weight gain leading to diabetes and cardiac complications, have already led to individual settlements of $1 billion. The Alaska case opens a different door. It is the first to have a jury trial, and asks the company to be liable for state Medicaid expenses for people who developed diabetes while taking this drug.

Zyprexa’s ascent came after the Texas Medication Algorithm Project (TMAP) named it a medication of choice opening the door for government purchasing for use in prisons, state facilities, and for adoption by Medicaid and Medicare. It is the company's blockbuster with sales of $4.8 billion. That Lilly had withheld information first came to attention after the release of internal company documents by Alaska attorney Jim Gottstein. Gottstein was not involved directly in a Lilly case, but represented clients with mental illness. The documents were later published all over the internet New York Times and became the subject of a court order.