Overview
- The Michigan Supreme Court, which ruled July 31, 2026, reversed lower rulings and allowed the state attorney general to pursue an investigation into Eli Lilly’s insulin pricing under the Michigan Consumer Protection Act.
- The 4-3 majority overruled earlier cases known as Smith v. Globe Life and Liss v. Lewiston-Richards and said judges must examine whether the exact conduct alleged is specifically authorized by statute before shielding regulated activity from consumer-protection claims.
- Attorney General Dana Nessel first sought court approval to investigate Eli Lilly in January 2022 after out-of-pocket vial costs neared $100; a trial court briefly authorized subpoenas before the probe was dismissed in 2022 and that dismissal was affirmed on appeal in 2023.
- Separate lawsuits around the country allege manufacturers and major pharmacy benefit managers coordinated to inflate list prices and collect undisclosed rebates, including Missouri’s suit naming 19 defendants and claims from Jefferson Health and Texas Health Resources.
- The decision could widen state ability to use consumer-protection law against regulated industries, which may accelerate document discovery in Michigan and influence how other states press pricing and rebate claims that affect patients’ out-of-pocket costs.