Celgene Loses Bid to Knock Out Shareholder Suit Over MS Drug

Celgene Corp. lost a bid to escape a securities fraud lawsuit accusing the drugmaker of misleading investors about its application for a new multiple sclerosis drug.

A reasonable jury could find two former Celgene executives acted with fraudulent intent by failing to tell shareholders about a risk the Food and Drug Administration would reject the drug application, Judge Michael Farbiarz in the US District Court for the District of New Jersey said.

The executives’ knowledge can also be imputed to the company, Farbiarz said, partly denying Celgene’s motion for summary judgment.

Refusal Risk

Investors filed the lawsuit in 2018, about ...