Bristol-Myers Squibb Hit With $450 Million Deal Lawsuit (1)

Bristol-Myers Squibb Co. plotted to rip off investors in a 2016 acquisition through legal gamesmanship aimed at evading a $450 million payment, according to a lawsuit unsealed Tuesday.

The pharmaceutical giant’s “convoluted and dishonest” scheme involved using regulatory “sleight of hand” to avoid handing over post-deal payments totaling roughly 75% of what it agreed to pay for Padlock Therapeutics Inc. so it could commercialize a potential autoimmune drug, according to the complaint filed by former Padlock stockholders.

The case echoes a recurring theme in Delaware’s Chancery Court, the leading US forum for merger fights, where jilted ex-shareholders often claim corporate ...