Eli Lilly must pay $62 million for off-label misuses and side effect disclosure violations on Zyprexa (10/9, Business). Missouri will get $1.55 million of that to go to consumer education and to enforce consumer-protection laws.
Consumers and employees pay for lawsuits and taxes on businesses. Lawsuits and taxes are overhead. Businesses respond to increases by cutting expenses with measures like layoffs, raising prices on products, or going out of business (where everyone is laid off).
As with special funds like Social Security, the $1.55 million will be lost in the midst of the general revenue funds. The only ones to profit from this lawsuit are lawyers, politicians and bureaucrats. To the public, it’s another stealth tax to be added to their financial burden. Apparently the bad decision-makers at Eli Lilly will still have their jobs.