Bloomberg Law
March 2, 2023, 5:07 PM

Bristol-Myers Beats Claim It Stalled Cancer Drug to Avoid Payout

Peter Hayes
Peter Hayes

Bristol-Myers Squibb Co. won dismissal of a proposed investor class action alleging it made misleading statements about a payout dependent on the Food and Drug Administration’s approval of a cancer therapy drug tied to its 2019 acquisition of Celgene.

The plaintiffs in the consolidated litigation alleged that BMS intentionally delayed FDA approval to avoid a $6.4 billion payout on “contingent value rights"—a security payable only if a future event occurs.

As part of the merger, BMS issued CVRs to Celene investors payable contingent on approval of three drugs by the FDA by specific deadlines. Because the FDA approved one of ...

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