Lawsuit against Bristol Myers over delayed cancer drug is revived
BMY•Court says UMB had standing to sue
The appeals court said UMB had standing to sue because Bristol Myers, the prior trustee and a majority of the CVRs' "beneficial owners" approved UMB's appointment, though the investors were not "registered" owners as defined in the CVR agreement.
"Bristol Myers was not confused about the status of the investors who purported to appoint UMB," Circuit Judge Beth Robinson wrote.
In his December ruling, Jesse Furman allowed Kansas City, Missouri-based UMB to pursue some claims against Bristol Myers, including breach of contract and failure to act in good faith.
Appeals court revives $6.7 billion case
A U.S. federal appeals court said a judge erred in dismissing a $6.7 billion lawsuit accusing Bristol Myers Squibb of cheating former Celgene shareholders by delaying federal approval for three drugs, including the cancer treatment Breyanzi.
In a 3-0 decision on Thursday, the 2nd U.S. Circuit Court of Appeals in Manhattan said UMB Bank was entitled to represent the Celgene shareholders as a trustee despite an error in how it was appointed.
Bristol Myers and its lawyers did not immediately respond to requests for comment. UMB and its lawyers did not immediately respond to similar requests.
