Bristol Myers Squibb settles $239M Celgene shareholder lawsuit over drug claims

Bristol Myers Squibb has agreed to pay $239 million to settle a class action lawsuit brought by former Celgene shareholders. The case centred on claims that Celgene misled investors about two key drugs, Otezla and Zeposia, leading to significant financial losses. A judge in New Jersey must still approve the deal before payments are distributed.

The lawsuit began in 2020, when shareholders accused Celgene of inflating its share price by overstating revenue forecasts for Otezla and ozanimod (later branded Zeposia). Internal warnings about Otezla's sales and regulatory hurdles for ozanimod were allegedly ignored. These claims emerged as Celgene faced the upcoming patent expiry for its blockbuster drug Revlimid.

In 2019, Amgen acquired Otezla from Celgene for $13.4 billion in cash. Later that year, Bristol Myers Squibb completed its $80.3 billion takeover of Celgene. The shareholders' legal team, led by Robbins Geller Rudman & Dowl, argued that the misrepresentations caused billions in losses.

A preliminary settlement was filed in federal court in Newark, New Jersey. Under the terms, the law firm will receive around 25–33% of the $285 million total fund as fees, with additional costs capped at $5.75 million. All defendants have denied any wrongdoing but chose to settle to avoid prolonged litigation.

The proposed settlement now awaits judicial approval. If accepted, the funds will compensate shareholders who held Celgene stock between April 27, 2017, and April 27, 2018. The Swedish pension fund AMF Tjänstepension AB is among the lead plaintiffs in the class action.