Key facts
- A U.S. federal appeals court revived a lawsuit.
- The lawsuit is valued at $6.7 billion.
- Bristol Myers Squibb is accused of defrauding former Celgene shareholders.
- The company allegedly delayed FDA approval for three drugs.
- One of the delayed drugs is the cancer treatment Breyanzi.
A U.S. federal appeals court has revived a significant lawsuit that had previously been dismissed, allowing a $6.7 billion case against Bristol Myers Squibb to move forward. The lawsuit centers on allegations that Bristol Myers Squibb defrauded former Celgene shareholders. Specifically, the company is accused of intentionally delaying the U.S. Food and Drug Administration (FDA) approval process for three important drugs. These drugs include Breyanzi, a notable cancer treatment, as well as two other unspecified medications. The appeals court's decision overturns a lower court's ruling that had dismissed the case, signaling a potential shift in the legal battle over the alleged misconduct. The core of the claim is that Bristol Myers Squibb manipulated the drug approval timeline to its financial advantage, thereby harming the value received by those who were shareholders of Celgene prior to its acquisition. The revival of the lawsuit means that the claims of fraudulent delay will now be subject to further legal scrutiny and potential proceedings.