Bristol Myers Squibb Faces Revival of USD 6.7 Billion Celgene Shareholders' Lawsuit
A U.S. appeals court revived a $6.7 bn lawsuit accusing Bristol Myers of delaying Celgene drug approvals to avoid shareholder payouts.Summary
The U.S. Court of Appeals for the Second Circuit overturned a lower court’s dismissal of a $6.7 billion lawsuit filed by former Celgene shareholders against Bristol Myers Squibb. The plaintiffs, represented by UMB Bank as trustee, allege that Bristol Myers deliberately slowed the FDA approval process for three key drugs—Breyanzi (Liso‑cel), Ozanimod, and Ide‑cel—to prevent the triggering of contingent value rights (CVR) that would have paid them an extra $9 per share. The appeals court ruled that UMB had standing to sue because Bristol Myers, the prior trustee, and a majority of beneficial CVR owners approved its appointment, despite a technical error in the registration. The decision revives claims that Bristol Myers failed to use diligent efforts to secure approvals and improperly delisted the CVRs before holders could enforce them. A separate set of claims, including breach of contract and bad‑faith conduct, had already been allowed to proceed by District Judge Jesse Furman in a related filing, and the latest ruling may influence that litigation as well.
(Source：Business Medical Dialogues)