Bristol-Myers Squibb class action

According to NJ’s Star-Ledger, Bristol-Myers Squibb is gearing up for its class action case:

It’s been only a week since Bristol-Myers Squibb reached a landmark agreement with federal prosecutors to settle a $2 billion accounting scandal, but already the drug maker faces a new — and potentially costly — legal challenge.

In federal court in Trenton this week, lawyers began arguing motions in a massive shareholder lawsuit that could go to trial as early as the winter. The case involves Vanlev, a high-blood pressure drug candidate Bristol once touted as a potential billion-dollar seller but abruptly withdrew from clinical trials three years ago. In one day, Bristol’s stock price plunged 15 percent.

The shareholder suit alleges Bristol officials hyped Vanlev as a commercial blockbuster in order to artificially inflate its share price, even though they knew the Food and Drug Administration would reject it. Two sets of clinical trials found Vanlev caused a life-threatening allergic reaction.

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