Bristol-Myers Squibb Co. said Monday it has put aside $185 million to settle a class action lawsuit that alleges the company’s stock was artificially inflated by false and misleading claims the drugmaker made as it touted the prospects of an experimental heart drug.
The shareholders’ lawsuit, filed in U.S. District Court in New Jersey, alleges that company executives and consultants praised the experimental blood-pressure drug Vanlev as a potential blockbuster despite the side effect of angioedema, or a severe swelling that can choke off a person’s airway, and few benefits over existing drugs. The suit says Bristol-Myers knew of the problem as early as 1996 but continued to make upbeat statements about Vanlev’s sales potential.
