Judge narrows Eli Lilly suit, leaves unfair-competition claims against Mochi Health’s pharmacy

In San Francisco, Judge Jacqueline Scott Corley trimmed Eli Lilly's lawsuit targeting telehealth company Mochi Health and its supplier Aequita. While she rejected Lilly's Lanham Act false-advertising conspiracy theory, she upheld claims under California's Unfair Competition Law, suggesting the defendants may have conspired to violate the state's ban on corporate practice of medicine. Lilly contends that Mochi Health hires physicians for its medical arm, advertises their services, and changes compounded tirzepatide doses for business reasons.

The complaint also accuses Aequita Pharmacy and Aequita Corporation, linked to Abraham Chaibi, of turning a blind eye to the practice and profiting from it. Corley found enough evidence that Aequita knew of the scheme and benefited financially, but said Lilly failed to show how the defendants furthered false advertising. The ruling permits Lilly to pursue the unfair-competition theory while dismissing the Lanham Act claims without leave to amend.