Bristol-Myers’ $450 Million Earnout Pay Fight Sent to Arbitrator

Bristol-Myers Squibb Co. succeeded in moving to arbitration most claims from a breach-of-contract lawsuit alleging it sought to avoid a $450 million earnout payment tied to its 2016 acquisition of Padlock Therapeutics Inc.

The contract’s dispute resolution process for determining whether a drug qualifies for milestone payments is an arbitration provision and not one regarding expert determination, according to an unredacted opinion released Monday by the Delaware Chancery Court.

“The Agreement makes this clear by specifically marking a distinction between an ‘expert’ and an ‘arbitrator’ in other provisions,” Delaware Superior Court Judge Patricia A. Winston said in an opinion originally ...