BMS Agrees to $89 Million Settlement to Resolve Securities Lawsuits

Bristol-Myers Squibb (BMS) has agreed to pay $89 million to settle four lawsuits brought by plaintiffs who opted out of a class action settlement last year related to BMS' investment in and relationship with biotechnology company ImClone Systems.

The lawsuits, which were pending in the New York State Supreme Court, were sparked by wholesaler inventory issues and other accounting matters related to BMS' investment in ImClone's cancer drug Erbitux (cetuximab). BMS will pay the settlement from a $140 million reserve it established for resolving the ImClone litigation. The company said it anticipates reserving an additional undisclosed amount of money in the second quarter to resolve other related matters.

The class action lawsuit over BMS' involvement with ImClone ended last November when the U.S. District Court in the Southern District of New York approved a $300 million settlement agreement.