Friday, March 24, 2006

BMS - the price of "channel stuffing"; $1.5 billion

More than 150,000 investors in Bristol-Myers Squibb are certified to be reimbursed some of the $1.5 billion they lost in 2002 after the drugmaker deceived shareholders about its profitability, according to federal court records.

The Securities and Exchange Commission yesterday asked a federal judge to authorize payouts from two funds established by Bristol to settle lawsuits, investigations and a federal criminal case into a scheme known as "channel stuffing," the practice of encouraging wholesalers to buy more products than needed.

More here.

Meanwhile the ex BMS-execs who are accused of " channel stuffing" (which does indeed sound like a federal offence) are fighting back .

No comments: