The 2nd U.S. Circuit Court of Appeals reinstated a $6.7 billion lawsuit against Bristol Myers Squibb. Former Celgene shareholders allege the company intentionally delayed FDA approvals for three acquired drugs.
The 2019 acquisition agreement included contingent value rights for investors. These rights entitled shareholders to an additional $9 per share if specific milestones were met.
Plaintiffs claim Bristol Myers missed deadlines for cancer treatments Breyanzi and Abecma to avoid the payout. The lawsuit also involves the multiple sclerosis drug Zeposia. This appellate ruling overturns a previous lower court dismissal.