Bristol Myers sued over $6B Celgene CVR as trustee claims 'blatant misconduct' for liso-cel delays
After Bristol Myers Squibb’s $74 billion buyout of Celgene, the industry intensely scrutinized whether or not the Big Pharma would ultimately hit its drug approval deadlines to pay out former Celgene shareholders more than $6 billion as part of the $9 CVR associated with the acquisition.
Now that the CVR has gone kaput, those shareholders are taking Bristol Myers to court.
In an unsurprising move that could be the first of many lawsuits, a bank representing Celgene stakeholders sued Bristol Myers on Thursday, for purposely delaying the development of liso-cel in order to avoid paying out the CVR. The firm, UMB Bank, alleged the Big Pharma engaged in “blatant misconduct” by failing to meet the standards set out in the CVR’s broad “Diligent Efforts” clause and is looking for $6.4 billion in restitution.
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