The U.S. Supreme Court on March 23, 2026 denied Eli Lilly and Takeda Pharmaceutical Co.’s motion to dismiss a class‑action lawsuit that accuses the companies of fraud in the marketing of the diabetes drug Actos. The decision clears the way for the plaintiffs to pursue claims that the companies failed to disclose the drug’s potential risk of bladder cancer.
The lawsuit alleges that marketing materials for Actos omitted or downplayed the bladder‑cancer risk, misleading physicians and third‑party payers who covered the drug’s cost. The case is a RICO‑based class action that seeks treble damages, meaning the plaintiffs could recover up to three times the amount of actual financial harm. The class includes tens of thousands of insurers and other payers who paid for Actos prescriptions.
Actos litigation has a long history. In 2015 Takeda agreed to pay about $2.4 billion to settle roughly 9,000 lawsuits, and a 2014 jury verdict awarded $9 billion to plaintiffs—later reduced to $36.8 million. These past settlements and verdicts illustrate the scale of potential liability that the current lawsuit could add.
For Eli Lilly and Takeda, the ruling signals a significant financial risk. Potential damages could reach into the billions, and the litigation may trigger additional regulatory scrutiny and reputational damage. Investors may view the outcome as a warning that the companies’ compliance and disclosure practices are under intense examination.
The decision underscores the broader industry risk that pharmaceutical companies face when marketing drugs with known safety concerns. It also highlights the power of RICO statutes to amplify damages in cases of alleged deceptive conduct.
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