Biotech Values

[DewDiligence]

CELG (BMY) withdraws from tentative litigation settlement re impeding generic versions of Revlimid and Thalomid:

https://finance.yahoo.com/news/celgene-rescinds-agreement-compensate-cancer-183700568.html

The provisions of the settlement allowed Celgene to rescind the agreement if certain class members decided not to participate in the class settlement and instead pursue their own claims.

More than 8,000 individuals and more than 800 third party payors (e.g., insurers, companies that self-insure) filed claims to participate in the settlement. Another 80 entities filed an opt out form seeking to be excluded from the settlement and preserve their right to bring a separate lawsuit against Celgene. Citing the exclusion of these class members, Celgene withdrew from the settlement agreement.

…By backing out of the class settlement, Celgene returns to litigation against the putative class, including the 9,000 class members that would have released their claims in exchange for a part of the $55 million settlement, facing total exposure of greater than $3 billion.

There must be more to this story than what is stated above.