02:24 PM EDT, 08/12/2025 (MT Newswires) -- (Updates with additional information in the third paragraph.)

Eli Lilly ( LLY ) is being sued by Texas Attorney General Ken Paxton for allegedly bribing medical providers to prescribe its products, including weight loss and diabetes medications Mounjaro and Zepbound, the attorney general's office said Tuesday.

Most of these prescriptions were covered by Medicaid, leading to millions of dollars in claims to Texas Medicaid that were compromised by the company's alleged "illegal marketing and quid pro quo arrangements," in breach of the Texas Health Care Program Fraud Prevention Act, according to the statement.

According to Paxton, Eli Lilly ( LLY ) fraudulently sought to boost profits at taxpayer expense and "put corporate greed over people's health." The lawsuit builds upon his earlier legal action against Eli Lilly ( LLY ) and other pharma companies to hold drug makers accountable for fraud.

Eli Lilly ( LLY ) didn't immediately reply to MT Newswires' request for comment.

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