Appeals Court Revives $6.7B Lawsuit Against Bristol Myers Over Delayed Cancer Drug
BMY sits 53% above its 52-week low of $42.52 on light trading volume (0.3× avg).
Summary
A federal appeals court revived a $6.7 billion lawsuit accusing Bristol Myers Squibb of cheating former Celgene shareholders by delaying FDA approvals for three drugs, including Breyanzi. The 2nd U.S. Circuit Court of Appeals ruled 3-0 that UMB Bank has standing to represent Celgene CVR holders as trustee. The case was previously dismissed in September 2024, so this reversal reopens significant liability exposure. The lawsuit stems from the $80.3 billion Celgene acquisition in 2019, where CVR holders were owed $9 per share if approvals were timely. Bristol Myers missed the Breyanzi deadline by five weeks, and the court found the company was 'not confused' about UMB's appointment. This adds legal risk to a company already facing competitive pressure from Takeda's psoriasis drug and ongoing merger talks with AstraZeneca.
At the time of this announcement, BMY was trading at $64.92 on NYSE in the Life Sciences sector, with a market capitalization of approximately $132.6B. The 52-week trading range was $42.52 to $68.10. This news item was assessed with negative market sentiment and an importance score of 8 out of 10. Source: Reuters.