By Jonathan Stempel
NEW YORK, Dec 1 (Reuters) – A U.S. judge on Monday rejected Bristol Myers Squibb’s bid to dismiss a $6.7 billion lawsuit claiming it cheated shareholders of the former Celgene by delaying federal approval for three drugs, including the cancer treatment Breyanzi.
While dismissing some claims, U.S. District Judge Jesse Furman in Manhattan said the plaintiff, UMB Bank, may pursue some claims on behalf of the shareholders, including for Bristol Myers’ alleged breach of contract and failure to act in good faith.
Bristol Myers and lawyers for the Princeton, New Jersey-based company did not immediately respond to requests for comment. A lawyer for UMB declined to comment.
The lawsuit arose from Bristol Myers’ $80.3 billion purchase of Celgene in 2019.
Bristol Myers agreed to pay shareholders who held “contingent value rights” (CVR) an extra $9 per share in cash if it won timely U.S. Food and Drug Administration approvals for Liso-cel, which is sold as Breyanzi, and the drugs Ozanimod and Ide-cel.
UMB, in its role as a trustee, said Bristol Myers slow-rolled the process by not using “diligent efforts” to win approvals, and wrongly delisted the CVRs from the New York Stock Exchange before holders could enforce their rights.
Bristol Myers won FDA approval for Breyanzi to treat non-Hodgkin lymphoma on February 5, 2021, five weeks after the relevant deadline.
In a 24-page decision, Furman said UMB had legal standing to sue, after addressing concerns he raised in a September 2024 dismissal of its earlier lawsuit.
The judge also rejected Bristol Myers’ claim that its alleged lack of diligence did not trigger an “event of default,” and said a jury should decide whether Bristol Myers breached an implied agreement to act in good faith by delisting the CVRs.
Furman gave Bristol Myers three weeks to formally respond to UMB’s claims.
(Reporting by Jonathan Stempel in New York; Editing by Rod Nickel)
Comments