Eli Lilly hiked its 2025 guidance and posted second-quarter earnings that topped estimates on strong demand for its blockbuster weight loss and diabetes drugs.

Texas Attorney General Ken Paxton has filed a lawsuit against Eli Lilly and Co. (NYSE:LLY), accusing the pharmaceutical giant of bribing medical providers to promote its most profitable drugs, including the widely used GLP-1 medications Mounjaro and Zepbound for diabetes and weight loss.

Paxton's office said the company supplied free nurses to help care for patients who received its drugs, as well as administrative support services that helped providers process insurance claims.

Lilly's weight-loss medications Mounjaro and Zepbound are gaining market share on Novo's Wegovy and Ozempic, but investors remain unconvinced.

Texas Attorney General Ken Paxton claims that through an alleged kickback scheme Eli Lilly “fraudulently sought to maximize profits at taxpayer expense.”

Texas has sued pharmaceutical giant Eli Lilly for allegedly bribing and illegally inducing medical providers to prescribe its most profitable drugs, including the high-demand GLP-1 medications Mounjaro and Zepbound that are used for weight loss and diabetes treatment.