Lipitor, also known in its generic form as Atorvastatin, is a drug used to lower bad cholesterol and triglycerides in the blood. It is also supposed to increase the good cholesterol. Unfortunately, there are known side effects -- some mild and others very serious. Lipitor has been linked to an increased risk of Type 2 Diabetes, kidney failure, and liver dysfunction. Mild side effects can range from indigestion, stomach cramps and gas to joint and muscle pain, dizziness and nausea, memory loss and confusion.