U.S. District Judge Paul A. Crotty of the Southern District of New York ruled Wednesday that a securities class action lawsuit can proceed against Bristol-Myers Squibb Co. (BMY), denying the company’s motion to dismiss. The case concerns disclosures Bristol-Myers made regarding its attempts to settle patent litigation with Canadian drug maker Apotex Inc. over popular blood thinner Plavix.
As reported by Dow Jones Newswires, the court found that “plaintiffs have plausibly pleaded that Bristol-Myers’s statements were rendered misleading by the failure to include relevant information about the nature of the settlement negotiations and the terms of the settlement agreement. That is, plaintiffs have adequately alleged that a reasonable investor would have considered the undisclosed information material in making investment decisions.”
