Bristol-Myers Squibb Co. (NYSE – BMY), a global pharmaceutical company headquartered in New York, has announced the preliminary settlement of the securities class action pending against the company in the S.D.N.Y. The case, originally filed in 2002, alleges violations of federal securities laws in connection with the Company’s investment in and relationship with ImClone Systems, Inc. and issues related to wholesaler inventory and sales incentives, the establishment of reserves, and accounting for certain asset and other sales.
Although the district court dismissed the case with prejudice last March, plaintiffs were pursuing an appeal. The settlement is for $300 million and will be charged against Bristol-Myers’ litigation reserves. There has been significant media coverage of the settlement, including this Associated Press article.
Addition: The Wall Street Journal has an article (subscrip. req’d) discussing the settlement and the current securities litigation environment. The article notes that “it’s not often a defendant agrees to pay nine figures to resolve a case that had been thrown out of court.”