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    GM and Stellantis just laid off more than 2,000 additional workers because of the UAW’s strike

    GM said it idled an assembly plant in Kansas because of a shortage of parts due to the strike. About 2,000 of its workers were laid off Wednesday.
    Stellantis also laid off about 370 workers at three parts factories that supply its Jeep plant in Toledo, where the United Auto Workers went on strike last week.
    GM said because of the strike, the workers laid off Wednesday will not be eligible for the supplemental unemployment benefits it normally pays.

    United Auto Workers members on a picket line outside the Stellantis NV Toledo Assembly Complex in Toledo, Ohio, on Sept. 18, 2023.
    Emily Elconin | Bloomberg | Getty Images

    General Motors and Stellantis said they have laid off additional workers because of consequences related to the United Auto Workers strike.
    GM said in a statement Wednesday that it has halted production at its assembly plant in Fairfax, Kansas, because of a “shortage of critical stampings” that would have been supplied by its factory in Wentzville, Missouri, where workers went on strike last week. About 2,000 workers are affected.

    Earlier Wednesday, Stellantis said it is laying off about 370 employees at three parts factories in Ohio and Indiana immediately due to “storage constraints,” also related to the strike. The plants make parts for Jeep vehicles built at the automaker’s Toledo Assembly Complex, where workers are also on strike.
    UAW-represented workers walked out of the Wentzville and Toledo assembly plants, as well as a Ford Motor factory in Wayne, Michigan, near Detroit, on Sep. 15, after the three automakers failed to reach a deal on a new contract with the union.
    GM’s Fairfax Assembly plant builds the Chevrolet Malibu sedan and Cadillac XT4 crossover. GM said that because of the strike, the 2,000 workers laid off from Fairfax will not be eligible for the supplemental unemployment benefits that its laid-off employees would normally receive.
    “We have said repeatedly that nobody wins in a strike,” GM said in a statement. “What happened to our Fairfax team members is a clear and immediate demonstration of that fact. We will continue to bargain in good faith with the union to reach an agreement as quickly as possible.”
    Nearly 13,000 GM, Ford and Stellantis workers are on strike at the Wentzville, Toledo and Wayne plants. UAW President Shawn Fain said the union would announce more strikes Friday unless there is “serious progress” in negotiations. More

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    Kraft recalls 84,000 cases of American cheese slices over choking hazard

    Kraft Heinz announced a recall of Kraft Singles cheese slices after customers reported choking on stray pieces of plastic wrapping.
    Nearly 84,000 cases of product are affected, the company said.
    The hazard was caused by a faulty wrapping machine.

    Arrows pointing outwards

    Kraft Heinz recalled nearly 84,000 cases of Kraft Singles cheese slices on Tuesday after multiple customers reported a choking hazard.
    The food giant received complaints of plastic film that stuck to the cheese even after consumers removed the wrapper, the company said in a press release. In six instances, customers said they choked or gagged because of the plastic.

    Arrows pointing outwards

    Source: Kraft

    No injuries or health issues were reported.
    After it received the complaints, Kraft Heinz discovered a manufacturing error in a wrapping machine used to enclose the cheese slices in the plastic. The issue in some cases caused a thin strip of plastic film to remain even after customers took off the packaging, Kraft Heinz said. The company has since fixed the error and inspected other machines for it.

    Arrows pointing outwards

    Source: Kraft

    Kraft Heinz urged all customers with affected products not to eat them and to return the cheese slices to the store where they purchased them.
    Recalled products include the 16 oz. Kraft Singles American Pasteurized Prepared Cheese Product with an individual package UPC code of “0 2100061526 1” and a “Best When Used By” date of Jan. 10, 2024, through Jan. 27, 2024. Packages included in the recall will have an “S” and “72” in the manufacturing code, the company said.

    Arrows pointing outwards

    Source: Kraft

    Kraft Heinz is not the only major company to report a manufacturing error this year.

    Trader Joe’s reported an issue of its own in July, when the grocery chain’s Almond Windmill Cookies, as well as the Dark Chocolate Chunk and Almond Cookies, were found to potentially contain rocks.
    “If you purchased or received any donations of Almond Windmill Cookies and/or Dark Chocolate Chunk and Almond Cookies, please do not eat them,” the company said at the time. More

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    GM executive slams UAW over ‘flow of misinformation,’ rhetoric during strike

    As the UAW union enters day six of targeted strikes against the Detroit automakers, GM President Mark Reuss is criticizing union leadership for its rhetoric and “flow of misinformation.”
    Reuss focused on the union’s public bashing of the company and elements of GM’s contract proposal last week that included 20% pay raises and improved time off, bonuses and other benefits.
    Reuss said that the union’s full demands would be “untenable,” or unsustainable, for the company.

    Breaking with the long-standing tradition of the “handshake ceremony” with the auto executives of the Big Three auto makers to open contract talks, United Auto Workers president Shawn Fain instead speaks with and does “members’ handshakes” with Stellantis workers at the Stellantis Sterling Heights Assembly Plant on July 12, 2023 in Sterling Heights, Michigan. The UAW opens auto contract negotiations with Stellantis today, Ford on July 14, and General Motors on July 18. (Photo by Bill Pugliano/Getty Images)
    Bill Pugliano | Getty Images News | Getty Images

    DETROIT – As the United Auto Workers union enters day six of targeted strikes against the Detroit automakers, General Motors President Mark Reuss is criticizing union leadership for its rhetoric and “flow of misinformation” during the ongoing contract negotiations.
    Reuss, in an editorial, focused on the union’s public bashing of the company and elements of GM’s “record” contract proposal last week that included 20% pay raises and improved time off, bonuses and other benefits over the four-year term of the deal.

    “As the past has clearly shown, nobody wins in a strike,” Reuss said in a Wednesday column in the Detroit Free Press. “We have delivered a record offer. That is a fact. It rightly rewards our team members, while positioning the company for success in the future. Often in these situations, the clouds of rhetoric can obscure reality.”
    The UAW hasn’t responded to the op-ed, as of Wednesday morning.

    GM’s last offer was made Sept. 14, ahead of the union initiating a “Stand Up Strike” at one assembly plant each for GM, Ford Motor and Stellantis. UAW President Shawn Fain said Monday the strikes will expand at noon Friday unless “serious progress” is made in negotiations.
    Currently on strike are roughly 12,700 UAW workers from GM’s midsize truck and full-size van plant in Wentzville, Missouri; Ford’s Ranger midsize pickup and Bronco SUV plant in Wayne, Michigan; and Stellantis’ Jeep Wrangler and Gladiator plant in Toledo, Ohio.

    What did GM offer?

    Reuss said GM’s offer, which the union countered, recognizes “the many contributions our represented team members make to our company — past, present and future.”

    Under the deal, Reuss said about 85% of current represented employees would earn a base wage of approximately $82,000 a year. That’s compared with the average median household income in nine areas where GM has major assembly plants of $51,821, he said.

    GM’s current proposal is estimated to cost between $700 million and $1.2 billion over the life of the deal, Wells Fargo’s Colin Langan said in a Sept. 15 investor note. If GM gave in to all the union’s demands, it would cost the company between $6 billion and $8 billion under the deal, Langan said Wednesday on CNBC’s “Squawk Box.”
    “There’s a long way to go. We’re talking about fixed-costs, too. That’s the real pain point for the automakers,” Langan said, calling them “material numbers” for the companies.
    Key demands from the union have included 40% hourly pay increases; a reduced, 32-hour workweek; a shift back to traditional pensions; the elimination of compensation tiers; and a restoration of cost-of-living adjustments. Other items on the table include enhanced retiree benefits and better vacation and family leave benefits.

    ‘Untenable’

    Reuss said Wednesday that the union’s full demands would be “untenable,” or unsustainable, for the company.
    “If we don’t continue to invest, we will lose ground — quickly. Our competitors across the country and around the world, most of whom are non-union, will waste no time seizing the opportunity we would be handing them,” he said.

    Mark Reuss, executive vice president of global product development at General Motors Co. (GM), speaks next to a 2019 Chevrolet Silverado pickup truck during the 2018 North American International Auto Show (NAIAS) in Detroit, Michigan.
    Andrew Harrer | Bloomberg | Getty Images

    Reuss’ comments are the latest by automotive executives as the UAW takes a strategically aggressive approach during the talks, showing little leeway in its demands.
    Late Monday, Ford released a lengthy statement fact-checking comments made by Fain, including auto worker wages, company profits and stock buybacks.
    It followed Ford CEO Jim Farley last week saying the company would have “gone bankrupt by now” under the union’s current proposals. He’s also criticized Fain for his approach to bargaining.
    “We’ve never seen anything like this; it’s frustrating,” Farley told CNBC’s Phil LeBeau last week ahead of the strikes. “I don’t know what Shawn Fain is doing, but he’s not negotiating this contract with us, as it expires.” More

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    SpaceX countersues Justice Department, seeking to dismiss hiring discrimination case

    Elon Musk’s SpaceX sued the U.S. Department of Justice in a Texas federal court, as the company aims to stop the DOJ’s hiring discrimination case on constitutional grounds.
    “SpaceX wants to hire the very best candidates for every job regardless of their citizenship status, and in fact has hired hundreds of noncitizens,” the company wrote in its complaint.
    Central to the dispute is whom SpaceX can hire under military technology regulations.

    SpaceX headquarters in Los Angeles, California.
    AaronP/Bauer-Griffin | GC Images | Getty Images

    Elon Musk’s SpaceX sued the U.S. Department of Justice in a Texas federal court, as the company aims to stop the DOJ’s hiring discrimination case on constitutional grounds.
    The countersuit comes after the DOJ sued the company last month, alleging it discriminates in its hiring practices against refugees and people granted asylum in the U.S. Unlike SpaceX’s suit, filed in the Southern District of Texas, the DOJ suit was filed within a division of the agency that adjudicates immigration cases, a key point of contention in the company’s response.

    “SpaceX has not engaged in any practice or pattern of discriminating against anyone, including asylees or refugees. To the contrary, SpaceX wants to hire the very best candidates for every job regardless of their citizenship status, and in fact has hired hundreds of noncitizens,” SpaceX’s counsel, Akin Gump Strauss Hauer & Feld, wrote in the complaint filed Friday.
    SpaceX’s suit names a trio of defendants, including U.S. Attorney General Merrick Garland.

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    Central to the dispute is whom the company can hire under military technology regulations, specifically given how rocket and spacecraft tech falls under International Traffic in Arms Regulations and the Export Administration Regulations.
    “Every SpaceX employee has access to technology and data controlled by these statutory and regulatory regimes,” the company wrote in the countersuit.
    Founded in 2002, SpaceX employs more than 13,000 people across the U.S. In its response, SpaceX alleged it has “hired hundreds of noncitizens, including hires who were not U.S. Persons under” ITAR.

    “Throughout its rapid growth, SpaceX has always sought, and continues to seek, to hire the most talented people possible,” the company said.
    In recent years, SpaceX said its job postings averaged more than 90 applications each — and more than 100 applications for each of its engineering positions. SpaceX’s hiring tops the acceptance rates of even the most selective, elite U.S. colleges, as “only about 1% of applications result in a hire,” according to the company.
    The DOJ has been investigating SpaceX since June 2020, when the department’s Immigrant and Employee Rights Section received a complaint of employment discrimination from a non-U.S. citizen. More

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    Fall Covid shot rollout gets off to a bumpy start as some patients see insurance delays

    The rollout of a new round of Covid vaccines in the U.S. is off to a bumpy start as some patients report delays in health insurance coverage for the shots. 
    Private insurance plans and government payers such as Medicare are required to cover the new jabs from Pfizer and Moderna, which became available late last week.
    Dozens of posts on social media in recent days show some patients were charged anywhere between $125 and $190 for a shot at pharmacies. Others were told their insurance plans aren’t covering the new vaccines yet. 

    Pharmacist Ani Martirosyan administers an immunization to a patient at a CVS on Tuesday, Sept. 12, 2023 in Glendale, CA.
    Brian Van Der Brug | Los Angeles Times | Getty Images

    The rollout of a new round of Covid vaccines in the U.S. is off to a bumpy start as some patients report delays in health insurance coverage for the shots. 
    Private insurance plans and government payers such as Medicare are required to cover the new jabs from Pfizer and Moderna, which became available late last week. U.S. regulators have recommended all Americans ages 6 months and up get the new round of vaccines. 

    The Centers for Medicare & Medicaid Services, some private health-care providers and CVS confirmed the temporary delays in coverage and emphasized that Americans can access Covid vaccines at no cost through insurance plans. They said the reason for the delays is that some insurers are still working to update their plans to include the new vaccines.
    Dozens of posts on social media in recent days show some patients were charged anywhere between $125 and $190 for a shot at pharmacies. Others were told their insurance plans aren’t covering the new vaccines yet. 
    The reports are fueling confusion among insured patients about whether they can still access Covid shots for free – even after public health officials have reassured them that they can — just as cases tick up across the country.
    It also comes after a huge shift in how Covid vaccines are covered in the U.S.
    The government is moving shots to the commercial market, which means manufacturers will sell their new jabs directly to health-care providers at more than $120 per dose. Previously, the federal government purchased Covid vaccines directly from manufacturers at a discount to distribute to all Americans for free.

    A CMS spokesperson said the agency is “aware that some consumers have had difficulty accessing COVID-19 vaccines, including experiencing unexpected insurance coverage denials at the point of service.”
    CMS has been in “close contact with the plans about these transitions for months,” and is reaching out again to ensure that their systems are “up-to-date and prepared to meet their obligations to provide coverage of Covid-19 vaccines for participants, beneficiaries, and enrollees,” according to the spokesperson. 
    A spokesperson for CVS told CNBC that some payers “are still updating their systems and may not yet be set up to cover the updated COVID-19 vaccines.” They added that the company’s pharmacy teams can help patients schedule a vaccine appointment for a later date if their coverage is denied. 
    Sarah Lindsey, an owner of a Florida-based jewelry store, called on her own insurer to add the new Covid shots to its formulary. 
    “Any insured member trying to get it at a pharmacy is being told it’s not approved and will cost $155. There’s no excuse for this,” she wrote Monday in a post on X, formerly Twitter, tagging Florida Blue, a local Blue Cross Blue Shield insurer. 

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    A spokesperson for Florida Blue said a “small percentage” of patients experienced issues with coverage, but the insurer does cover the shots for most beneficiaries at no cost. Any insured patients who were charged for a Covid shot should contact their pharmacy for reimbursement or file a claim with Florida Blue.
    Meanwhile, a spokesperson for health-care provider Elevance Health urged pharmacies to resubmit Covid vaccine claims “so they can be processed at a $0 copay.” They added that they expect the delays in coverage to be resolved quickly.
    The coverage missteps come amid concerns that a mix of pandemic fatigue, the belief that Covid is “over” and confusion over personal risk levels will hinder the uptake of the new vaccines, which are designed to target the omicron subvariant XBB.1.5. 
    Only 17% of the U.S. population — around 56 million people — have received Pfizer’s and Moderna’s bivalent Covid boosters since they were approved last September, according to the Centers for Disease Control and Prevention.  More

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    Walmart opens a pet center with veterinary care and grooming as it signals bigger ambitions

    Walmart is opening its first pet services center, outside Atlanta, with plans to open more locations.
    The pilot location will offer vet care and grooming services.
    The retailer has also rolled out a service that allows customers to automate orders of dog food, cat litter and other frequent purchases.

    Walmart is piloting a pet services center in a suburb of Atlanta, but plans to open more locations in other parts of the country.

    Walmart is opening a dedicated pet services center, signaling it wants to be a place that customers turn to for veterinarian visits and dog grooming appointments along with grocery runs.
    On Wednesday, the retailer is opening a first-of-its-kind center in Dallas, Georgia, a suburb about 30 miles northwest of Atlanta.

    With the move, the nation’s biggest grocer is building on its traditional pet business. It has sold pet items for decades, including Ol’ Roy, its private label dog food that’s named after Walmart founder Sam Walton’s English setter.
    Yet with the new facility, Walmart will dip its toe into a more lucrative part of the pet industry: health care and other services. The company already stocks top pet medications at its Walmart pharmacies.
    Walmart’s pet services center will have its own dedicated entrance next to a store. It will carry the Walmart name, but employees of vet care and pet product company PetIQ will staff it. PetIQ has rented space for vet clinics inside more than 65 Walmart stores, after opening its first one in 2016.
    The Georgia location will serve as a pilot, but Walmart plans to open more locations, said Kaitlyn Shadiow, vice president of merchandising for pets for Walmart U.S. She declined to say how many pet shops it may ultimately have but said Walmart plans to open more next year, if not sooner.
    “We know pet services is an important need for our customers and we want to be able to provide that all in one place,” she said. She cited a Morgan Stanley study that found that about 40% of total pet industry revenue is driven by services.

    As Americans treat their dogs, cats and other animals like family members, more retailers have chased the expanding pool of dollars consumers are spending on vet bills or fashion-forward leashes or other accessories.
    Those include Kohl’s, which has started to devote space to pet items in some stores, and Lowe’s, which announced it is expanding mini Petco Health and Wellness shops and mobile vet services to more stores after testing the concept.

    Walmart is starting to offer pet services as other retailers, including Chewy and Petco, also chase opportunities to offer veterinary care.

    Consumers in the U.S. spent $136.8 billion on pets last year, according to industry group American Pet Products Association. That huge market includes a long list of expenses, such as food and treats, boarding, dog walking and veterinary care. After pet food and treats, vet care and products are the second-biggest driver of the industry — tallying up to $35.9 billion last year, according to APPA.
    As the Covid-induced pet boom recedes and consumers buy fewer pet toys and supplies, Chewy and Petco have both looked to pet health care to drive their futures — especially as those pandemic pups and other pets grow up.
    Retailers consider the pet space, much like items for kids, an attractive area because consumers are usually still willing to spend when their budgets are tight or the economy hits a rough patch, said Anna Andreeva, an analyst for Needham & Company who covers consumer and e-commerce companies including pet specialty retailers.
    Yet in the past few months, she said, cracks have emerged in that theory. Petco, Chewy and General Mills, the maker of dog food Blue Buffalo, have warned that some pet owners are becoming more price-sensitive and even trading down to cheaper pet food as they deal with inflation.
    For Walmart, that cost-conscious mentality could bring a competitive advantage — much like the one its grocery business has enjoyed over the last year due to its low-price reputation.

    What Walmart’s pet center will provide

    At the pet services center, Walmart will offer a range of vet and grooming services, including wellness exams, nail trims, teeth cleaning, hair cuts and more. The services range in price, from $15 nail trims to $25 rabies shots to $97 for a vital package. That visit includes a physical exam, several vaccines and a parasite screening.
    The pet store will provide vet services for dogs and cats. Grooming is available for dogs. Walmart said it has no plans now to add other animals.
    Along with opening the center, Walmart started rolling out a new offering this week that can automate customers’ frequent orders, including pet food and supplies. The subscription-based approach, which requires no fee, rips a page from the playbook of direct-to-consumer pet specialty retailer, Chewy. The company has grown its business with the help of Autoship, which allows customers who set up repeat deliveries of items to get a discount.
    The company’s membership program, Walmart+, has also gotten some pet-related perks, including a free one-year membership to pet telehealth service Pawp.
    Yet as it moves further into the pet space, Walmart will have to prove it can gain traction in a new business. The company has made a similar push to offer lower-priced doctor, dentist and therapy appointments to people through Walmart Health. It opened its first health clinic in 2019 in the same store in Dallas, Georgia, where it will now test pet services.
    The clinics speak to the challenge of entering a new business. Walmart’s health clinics have opened slowly, and the expansion effort has been complicated by frequent turnover of top leadership.
    By the end of 2023, Walmart expects to have a total of 48 health centers in Georgia, Arkansas, Illinois, Texas and Florida — only about 1% of Walmart’s more than 4,500 U.S. locations.
    With the proximity of Walmart’s pet service center to its store, the retailer will try to nudge customers to other purchases, as well. The pet center will have a small amount of retail space, where Walmart initially plans to sell its own private label pet brands.
    And while only service pets are allowed inside Walmart stores, customers who drop off a pet for a vet visit or grooming service can leave their dog at the kennel overseen by PetIQ employees while they swing into the store for groceries and other items, Shadiow said. More

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    White House no longer sending top officials to Detroit for UAW strike talks this week

    The Biden administration is no longer sending two key officials to Detroit this week to potentially help broker a deal between striking autoworkers and the Big Three car companies, a White House official told NBC News.
    President Joe Biden last week said he would dispatch White House senior advisor Gene Sperling and acting Labor Secretary Julie Su to support discussions between the companies and the United Auto Workers union.
    Biden largely sided with the striking autoworkers in an address Friday, calling on Ford, General Motors and Stellantis to share record profits with their workers.

    A United Auto Workers member on a picket line outside the Ford Motor Co. Michigan Assembly plant in Wayne, Michigan, on Sept. 15, 2023.
    Bloomberg | Bloomberg | Getty Images

    The Biden administration is no longer sending two key officials to Detroit this week to potentially help broker a deal between striking autoworkers and the Big Three car companies, a White House official told NBC News.
    President Joe Biden last week said he would dispatch White House senior advisor Gene Sperling and acting Labor Secretary Julie Su to support discussions between the companies and the United Auto Workers union.

    But the White House and the UAW mutually agreed it would be better to speak virtually via Zoom, the official said Tuesday.
    Sperling and Su could still go to Detroit next week but there are no firm plans for them to do so, the official added. “We’ll continue to assess travel timing based on the active state of negotiations,” the White House official said.
    Biden largely sided with the striking autoworkers in an address Friday. The president called on Ford, General Motors and Stellantis to share record profits with their workers.
    Despite that, Biden has received a relatively cold reception from the UAW.
    The union’s president, Shawn Fain, told MSNBC on Monday that he does not see a major role for the White House in resolving the dispute.

    “This battle is not about the president,” Fain said. “It’s not about the former president or any other person prior to that. This battle is about the workers standing up for economic and social justice and getting their fair share because they’re fed up with going backwards.”
    Nearly 13,000 UAW members are on strike at three key plants in Michigan, Missouri and Ohio. It is the first time the union has targeted all three automakers at the same time.
    Fain said late Monday that the UAW would launch additional strikes at more Ford, GM and Stellantis plants if “serious progress” is not made in negotiations by midday Friday.
    “Autoworkers have waited long enough to make things right at the Big Three. We’re not waiting around, and we’re not messing around. So, noon on Friday, Sept. 22, is a new deadline,” Fain said in a video released by the union.
    Biden, who often touts his middle-class upbringing, has sought to closely associate himself with the labor movement. But the strikes could test the president’s commitment to organized labor if the work stoppages expand and threaten broader economic disruption as he seeks a second term in office.
    Former President Donald Trump had called on the UAW to endorse his 2024 bid to retake the presidency, while at the same time attacking the union’s leadership.
    Trump is planning to skip the GOP primary debate next week and instead travel to Detroit to speak with union members. More

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    Eli Lilly sues clinics allegedly selling knockoff versions of Mounjaro diabetes drug

    Eli Lilly sued 10 medical spas, wellness clinics and compounding pharmacies across the U.S. for allegedly selling cheaper, unauthorized versions of the company’s diabetes drug Mounjaro. 
    The lawsuits come as Eli Lilly grapples with a shortage of Mounjaro, which can also help patients lose unwanted pounds.
    Eli Lilly initiated several lawsuits in federal courts in Florida, Texas, Arizona, Georgia, Minnesota, South Carolina and Utah. Those suits asked the courts for orders blocking the sales of counterfeit versions of Mounjaro and an unspecified amount in monetary damages.

    A pharmacist displays boxes of Ozempic, a semaglutide injection drug used for treating type 2 diabetes made by Novo Nordisk, at Rock Canyon Pharmacy in Provo, Utah, March 29, 2023.
    George Frey | Reuters

    Eli Lilly on Tuesday sued 10 medical spas, wellness clinics and compounding pharmacies across the U.S. for allegedly selling cheaper, unauthorized versions of the company’s diabetes drug Mounjaro. 
    The actions come as Eli Lilly grapples with a shortage of Mounjaro in the U.S. due to skyrocketing demand. Much of the drug’s popularity comes from its off-label ability to help patients lose unwanted pounds.

    Eli Lilly initiated several lawsuits in federal courts in Florida, Texas, Arizona, Georgia, Minnesota, South Carolina and Utah. The litigation asked the courts for orders blocking the sales of counterfeit versions of Mounjaro and monetary damages.
    Eli Lilly specifically accuses the spas, clinics and compounding pharmacies of marketing and selling “compounded” drug products that claim to contain tirzepatide, the active ingredient in Mounjaro. Compounded drugs are custom-made versions of a treatment that are not approved by the U.S. Food and Drug Administration. 
    Eli Lilly is the sole patent holder of tirzepatide and does not sell that ingredient to outside entities. It’s unclear what the spas and clinics are actually selling to consumers. 
    “Rather than invest the time and resources necessary to research, develop, and test their products in order to ensure that they are safe and effective and to obtain regulatory approval to market them, Defendant is simply creating, marketing, selling, and distributing unapproved new drugs for unapproved uses throughout Florida and fourteen other states,” Eli Lilly wrote in one suit against Rx Compound Store, a compound pharmacy based in Florida. 
    Eli Lilly, in the suit, added that selling counterfeit versions of Mounjaro “puts patients at risk by exposing them to drugs that have not been shown to be safe or effective.”

    Rx Compound Store did not immediately respond to CNBC’s request for comment on the suit.
    The moves come months after Novo Nordisk filed several lawsuits accusing spas and medical clinics of selling compounded versions of its highly popular weight-loss drugs Ozempic and Wegovy. 
    The FDA in May warned about the safety risks of unauthorized versions of Ozempic and Wegovy after reports emerged of adverse health reactions to compounded versions of the drugs.
    The FDA has not issued a warning about compounded versions of tirzepatide. However, Mounjaro, Ozempic and Wegovy have all been in short supply in the U.S. since last year, according to the FDA’s database. 
    Analysts and industry executives have said annual sales of those drugs and similar treatments for weight loss could hit $100 billion within a decade. More