Bristol-Myers Curbs Investor $6.4 Billion Payout Suit on Appeal

Bristol-Myers Squibb Co. prevailed against investor allegations it misled them about a payout tied to Food and Drug Administration approval of cancer treatments by acquired company Celgene Corp., an appellate court ruled Friday.

The US Court of Appeals for the Second Circuit affirmed the tossing of the contingent value rights purchasers’ lawsuit, agreeing with the district court finding that the plaintiffs didn’t adequately allege the level of intent to carry securities fraud claims against BMS and its then top officers in a summary order.

Their consolidated proposed class action claimed that BMS intentionally delayed FDA approval to avoid ...