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Paul Kalb, head of Sidley Austin’s national health care group, is representing drug maker Eli Lilly & Co. in its attempt to resolve a federal probe into whether it fraudulently marketed the anti-psychotic drug Zyprexa. Kalb practices in Sidley’s D.C. office. Nina Gussack, a partner in the Philadelphia office of Pepper Hamilton, is also representing Lilly. Both attorneys declined to comment. The New York Times reported last week that Lilly has entered into advanced settlement discussions with the U.S. Attorney’s Office for the Eastern District of Pennsylvania that could result in more than $1 billion in fines for the company. Prosecutors declined to confirm or deny any discussions. In an e-mailed statement, a Lilly spokeswoman confirmed that the company received a grand jury subpoena, but she declined to comment further. Lilly has already faced thousands of suits over claims that Zyprexa caused users to develop diabetes and had other adverse side effects. And last month, Lilly shareholders sued the company.
Marisa McQuilken can be contacted at [email protected].

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