A Manhattan federal judge on Monday carved down—but refused to kill—a high-stakes lawsuit accusing Bristol-Myers Squibb of deliberately stalling FDA approvals to avoid paying $6.7 billion owed to Celgene shareholders after the companies’ blockbuster 2019 merger.
Court Says Trustee Has Standing
In a mixed ruling, U.S. District Judge Jesse M. Furman rejected Bristol-Myers Squibb’s attempt to toss the case for lack of subject-matter jurisdiction, while simultaneously pruning portions of the complaint for failure to state a claim.
The judge held that UMB Bank—which brought the suit as trustee for Celgene investors—has standing, concluding the bank was “properly appointed” following a judicially ordered reconfirmation process.
That decision is a sharp pivot from September 2024, when Judge Furman tossed the previous version of the 3-year-old dispute, finding UMB had not correctly replaced Equiniti Trust Co. as trustee under the contingent value rights (CVR) agreement tied to the $74 billion Celgene acquisition.
