Last month, U.S. District Judge Jesse Furman of the U.S. District Court for the Southern District of New York dismissed a $6.4 billion lawsuit against issuer Bristol-Myers Squibb & Co BMY.
The plaintiff, UMB Bank, had not been properly appointed as the trustee for the securities and therefore lacked standing to sue on behalf of the directing holders.
The issue undermined the lawsuit, filed 17 months after Bristol Myers acquired Celgene for $80.3 billion in 2019.
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UMB Bank NA filed suit against Bristol-Myers in 2021. The firm alleges that the company intentionally slow-rolled the approval process for a cancer drug to dodge paying $6.4 billion owed to former Celgene shareholders under a contingent value rights agreement.
On Thursday, Bristol Myers Squibb was again hit with a $6.7 billion lawsuit. The company allegedly delayed federal approval for three drugs to avoid paying former Celgene shareholders.
The case, filed by UMB Bank, claims the delay cost “contingent value rights” (CVR) holders an extra $9 per share in cash. The drugs involved include the cancer treatment Breyanzi.
In the third quarter of 2024, Breyanzi generated sales of $224 million, up from $92 million a year ago.
Per Reuters, UMB resolved the appointment issue. The bank is now confirmed as trustee, allowing it to proceed with the lawsuit. The estimated liability has increased from $6.4 billion to $6.7 billion.
Price Action: BMY stock is down 0.19% at $58.39 during the premarket session at last check Friday.
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