Bristol-Myers Must Face $6.4 Billion Suit Over Celgene CVRs

Bristol-Myers Squibb Co. failed to win dismissal of a lawsuit alleging the drugmaker deliberately delayed production of a lymphoma drug to avoid paying more than $6 billion to former shareholders of Celgene Corp., which it acquired in 2019.

The complaint by UMB Bank NA, a trustee for the former shareholders, alleged Bristol didn’t follow industry standards in winning Food and Drug Administration approval for its drug Liso-cel drug because it wanted to avoid triggering contingent value rights for which some Celgene investors had exchanged their shares.

CVRs are securities that become payable after a specific event occurs, such as ...