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Judge gives preliminary approval of Bristol-Myers' settlement
2/9/2006, 9:52 a.m. ET
By THERESA AGOVINO The Associated Press
NEW YORK (AP) — Bristol-Myers Squibb Co. said Thursday that a judge gave preliminary approval for a proposed $185 million settlement to end a class-action lawsuit that alleges the drugmaker artificially inflated its stock price by making false and misleading claims about an experimental heart drug.
U.S. District Judge Stanley Chesler entered preliminary approval of a settlement for the case pending in the U.S. District Court in New Jersey, relating to the drug known as Vanlev, the company said. Vanlev was never approved.
Under the proposed settlement, Bristol-Myers Squibb will pay $185 million to create a settlement fund to pay the claims of certain investors who purchased Bristol-Myers Squibb common stock during the period from Oct. 19, 1999 through March 20, 2002.
Last month, Bristol-Myers announced it had reached a settlement with plaintiff lawyers and had established a reserve to settle the case. At that time, Thomas Dubbs, a plaintiff's lawyer in the case, said he hoped the settlement would act as a deterrent to other companies hiding damaging information.
The settlement also includes provisions regarding the company's commitment to the public disclosure of the results of certain clinical trials, and the registration of trials on an appropriate publicly-accessible database.
The shareholders' lawsuit alleges that company executives praised Vanlev as a potential blockbuster despite the side knowing it had potentially severe side effects as early as 1996.
But on April 19, 2000, Bristol-Myers announced it was withdrawing its application for approval from the U.S. Food and Drug Administration because of side effects. The stock fell 39 percent, according to the suit.
In July of 2000, Bristol-Myers said it would test Vanlev at lower doses where the problem of side effects didn't seem as severe. The complaint alleges that there were still problems at the lower doses, and that Bristol-Myers didn't announce it to the market until March 20, 2002, sending the stock down more than 15 percent.
The company said it agreed to the settlement without any admission of wrongdoing.
The court has set another hearing in the case for May 11.
Bristol-Myers shares fell 13 cents to $22.61 in early trading on the New York Stock Exchange. Its shares have traded in a 52-week range of $20.70 to $26.60.
Copyright 2006 Associated Press. All rights reserved.
Judge gives preliminary approval of Bristol-Myers' settlement
2/9/2006, 9:52 a.m. ET
By THERESA AGOVINO The Associated Press
NEW YORK (AP) — Bristol-Myers Squibb Co. said Thursday that a judge gave preliminary approval for a proposed $185 million settlement to end a class-action lawsuit that alleges the drugmaker artificially inflated its stock price by making false and misleading claims about an experimental heart drug.
U.S. District Judge Stanley Chesler entered preliminary approval of a settlement for the case pending in the U.S. District Court in New Jersey, relating to the drug known as Vanlev, the company said. Vanlev was never approved.
Under the proposed settlement, Bristol-Myers Squibb will pay $185 million to create a settlement fund to pay the claims of certain investors who purchased Bristol-Myers Squibb common stock during the period from Oct. 19, 1999 through March 20, 2002.
Last month, Bristol-Myers announced it had reached a settlement with plaintiff lawyers and had established a reserve to settle the case. At that time, Thomas Dubbs, a plaintiff's lawyer in the case, said he hoped the settlement would act as a deterrent to other companies hiding damaging information.
The settlement also includes provisions regarding the company's commitment to the public disclosure of the results of certain clinical trials, and the registration of trials on an appropriate publicly-accessible database.
The shareholders' lawsuit alleges that company executives praised Vanlev as a potential blockbuster despite the side knowing it had potentially severe side effects as early as 1996.
But on April 19, 2000, Bristol-Myers announced it was withdrawing its application for approval from the U.S. Food and Drug Administration because of side effects. The stock fell 39 percent, according to the suit.
In July of 2000, Bristol-Myers said it would test Vanlev at lower doses where the problem of side effects didn't seem as severe. The complaint alleges that there were still problems at the lower doses, and that Bristol-Myers didn't announce it to the market until March 20, 2002, sending the stock down more than 15 percent.
The company said it agreed to the settlement without any admission of wrongdoing.
The court has set another hearing in the case for May 11.
Bristol-Myers shares fell 13 cents to $22.61 in early trading on the New York Stock Exchange. Its shares have traded in a 52-week range of $20.70 to $26.60.
Copyright 2006 Associated Press. All rights reserved.
posted by Jones Lang LaSalle NJ News Blog at 11:28 AM
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