Bristol-Myers Settles Plavix Securities Suit For $125M

Bristol-Myers Settles Plavix Securities Suit For $125M - 7/23/2009

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2009 News and Press Releases

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News	News 2009
HEADLINES \| SETTLEMENTS AND DISMISSALS \| COURT FILINGS LINKS TO OTHER NEWS \| NEWS ARCHIVE	HEADLINES ARCHIVED SETTLEMENTS AND DISMISSALS ARCHIVED

SETTLEMENT NEWS:

Bristol-Myers Settles Plavix Securities Suit For $125M
Leigh Kamping-Carder

Securities Law 360. July 23, 2009
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EXCERPT: Bristol-Myers Squibb Co. has reported a $125 million settlement in a securities class action that accuses the drugmaker of duping shareholders and causing a stock drop when it failed to properly disclose a patent deal for a generic version of its blood-thinning drug Plavix. The settlement, reached in May, was disclosed to the public on Thursday in the company’s quarterly report filed with the U.S. Securities and Exchange Commission. Previously, an attorney for the plaintiffs, Salvatore Graziano of Bernstein Litowitz Berger & Grossman LLP, said the parties had reached an agreement in principle on a settlement in the case and that limited further discovery was taking place in order to finalize the deal, according to an endorsed letter dated June 3. The settlement is still subject to approval from the U.S. District Court for the Southern District of New York. A spokeswoman for BMS could not immediately be reached for comment Thursday. The suit, brought by the Ontario Teachers' Pension Plan Board and the Minneapolis Firefighters Relief Association, centers around a contentious deal between BMS and generics maker Apotex Corp., long under scrutiny for its impact on competition. Shareholders said BMS misled them and subjected the agreement to a heightened risk of rejection by regulators. Two former BMS executives, Peter Dolan and Dr. Andrew Bodnar, were also named defendants in the case. Judge Paul A. Crotty denied BMS' motion to dismiss in August 2008, saying that the company had not persuasively addressed the plaintiffs' chief complaint — that BMS failed to disclose that it had relinquished certain legal rights that would otherwise have been available in the patent litigation. Also in August, Judge Crotty dismissed a separate but related securities suit against nine members of BMS' board of directors because the plaintiff failed to explain why the demand on BMS would be futile.

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