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.

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.”

"Big Pharma compromised medical decision-making by engaging in an illegal kickback scheme," Texas Attorney General Ken Paxton said.

Texas Attorney General Ken Paxton alleges that Eli Lilly bribed Texas medical providers to provide the company's drugs. Eli Lilly denies the claims.