Bristol Myers Squibb Lawsuit

NEW YORK (Reuters) – Bristol Myers Squibb was hit on Thursday with a $6.7 billion lawsuit alleging it cheated former Celgene shareholders by delaying federal approval for three drugs.

This lawsuit comes 1.5 months after a federal judge dismissed an earlier version of the case. It claims that Bristol Myers deprived holders of contingent value rights (CVR) an extra $9 per share in cash by delaying the approval of drugs, including cancer drug Breyanzi, to avoid making a big payout.

On Sept. 30, U.S. District Judge Jesse Furman ruled that UMB Bank, the plaintiff, had never been properly appointed trustee for the CVR holders, which led to the dismissal of the previous lawsuit.

In Thursday's complaint, UMB Bank stated it has rectified the judge’s concerns and confirmed its role as trustee, enabling it to sue. The estimated liability of $6.7 billion has risen from $6.4 billion mentioned earlier.

Neither Bristol Myers nor its attorneys responded to inquiries after market hours, and UMB Bank's lawyers were also unresponsive.

Bristol Myers received FDA approval for Breyanzi to treat non-Hodgkin's lymphoma on Feb. 5, 2021, five weeks past the specified deadline for the CVR holders.

The case: UMB Bank NA v Bristol-Myers Squibb (NYSE:BMY) Co, U.S. District Court, Southern District of New York, No. 24-08668.