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Wisner Baum: Ninth Circuit Affirms Actos RICO Class Action Certification Against Takeda and Eli Lilly
Appellate Court upholds decision in first-ever non-settlement national RICO class action lawsuit certified against a major pharmaceutical company, with potential damages exceeding $7 billion.
SAN FRANCISCO, June 18, 2025 /PRNewswire/ -- The U.S. Court of Appeals for the Ninth Circuit affirmed a class certification order in Painters & Allied Trades District Council 82 Health Care Fund v. Takeda Pharmaceutical Company Limited, marking a watershed moment in a first-of-its-kind class action that is now in its eleventh year.
The Ninth Circuit upheld the certification of a national class of third-party payers seeking damages under the Racketeer Influenced and Corrupt Organizations (RICO) Act against pharmaceutical giants Takeda Pharmaceutical Company and Eli Lilly and Company. The suit accuses both companies of conspiring to conceal the bladder cancer risks associated with the diabetes drug Actos (pioglitazone) for over a decade, exposing millions of vulnerable diabetics to a carcinogen without their consent. It is a legacy of fraud, attorneys say, and this ruling finally paves the way for a jury trial on this important case.
The case is the first non-settlement national RICO class action lawsuit certified against a major pharmaceutical company. Legal experts estimate the total damages could exceed $7 billion.
Important Legal Precedent
The Ninth Circuit's affirmation comes despite opposition from the pharmaceutical defendants and industry amici, who challenged the district court's class certification on multiple grounds. In a detailed memorandum, the appellate court rejected each of the defendants' arguments, finding that the lower court 'properly conducted a 'rigorous analysis,' as required to certify a class,' and adding that it 'did not abuse its discretion by finding the predominance requirement satisfied.'
The case stems from allegations that Takeda and Eli Lilly engaged in a decade-long conspiracy to conceal Actos's significant bladder cancer risks. Internal documents revealed Takeda and Lilly knew about the bladder cancer risk as early as 1999. After the FDA mandated a bladder cancer warning for Actos in 2011, drug sales dropped by 80%, demonstrating the material impact of the fraud.
Plaintiffs allege the companies knew about the bladder cancer risks but chose to hide them to protect billions in annual sales, defrauding third-party payers who paid for the medication.
Statement from Lead Counsel
'We are in our eleventh year litigating this case and are eager to finally get this case to trial,' said R. Brent Wisner, managing partner of Wisner Baum LLP and national class counsel.
'The evidence in this case is crystal clear: The class was deceived into purchasing billions of dollars of Actos by Takeda and Lilly whose actions plainly violated civil RICO, and exposed millions of diabetics to a carcinogen without their consent or knowledge. It's been a long and hard-fought journey, but the magnitude of this precedent and the potential impact on all pharmaceutical manufacturers was worth it. It seems perseverance is the number one determinant of success in the end. We are ready to tell this story to a jury and recoup the billions Takeda and Lilly pilfered from our clients and all those similarly situated.'
What's Next
With class certification affirmed, Wisner hopes that a trial date will be set for 2026. The class will seek to prove their allegations and recover treble damages under RICO's enhanced penalty provisions.
Wisner Baum LLP, along with co-counsel Christopher L. Coffin of Pendley, Baudin & Coffin, LLP, serves as national class counsel. The case is Painters & Allied Trades District Council 82 Health Care Fund v. Takeda Pharmaceutical Company Limited, No. 23-55742 (9th Cir. 2025), District Court Case No. 2:17-cv-07223-JWH-AS (C.D. Cal.)
Media Contact:
Diana McKinley
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The award-winning law firm of Wisner Baum has successfully litigated cases against many of the largest pharmaceutical companies in the world. Since 1985, the firm has earned a reputation for breaking new legal ground, holding corporations accountable, influencing public policy, and raising public awareness on important safety issues. Across all areas of practice, the firm has won more than $4 billion in settlements and verdicts.
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