Bristol-Myers to Face $6.7 Billion Celgene Deal Payout Suit (1)

Bristol-Myers Squibb Co. must defend against allegations brought by a trustee for certain Celgene Corp. shareholders who got contingent value rights through its 2019 acquisition.

UMB Bank NA, suing as a trustee for the holders, sufficiently alleged Bristol-Myers breached an implied covenant of good faith and fair dealing through its delisting of the CVRs, US District Court for the Southern District of New York Judge Jesse M. Furman said.

A CVR is a type of security which requires the issuer to pay the holder if an event occurs by a specific date—in this case, regulatory approval of certain Celgene ...