$750 Million Distribution Begins for Bristol-Myers Fraud Victims
FOR IMMEDIATE RELEASE
Washington, D.C., June 8, 2006 - The Securities and Exchange Commission announced that starting today $750 million will be distributed to compensate shareholders injured by fraudulent earnings management at Bristol-Myers Squibb Company (BMS). The distribution fund includes $150 million BMS paid to settle fraud charges brought by the Commission. The fund also includes $300 million BMS paid to settle a related civil class action, and $300 million paid by BMS in a deferred prosecution agreement with the U.S. Attorney's Office in New Jersey to address the company's criminal liability. Recent orders entered by federal courts in New Jersey and New York allowed for the coordinated distribution.
"Today's distribution exemplifies the SEC's commitment to corporate accountability and investor restitution," said SEC Chairman Christopher Cox. "The penalty we are imposing will help to compensate injured shareholders as well as deter future misconduct. It will improve confidence in the fairness of our capital markets by reminding both companies and investors that the market cops are on the beat."
On Aug. 4, 2004, without admitting or denying the allegations in the Commission's complaint, BMS consented to be permanently enjoined from violating certain provisions of the federal securities laws. The company also agreed to remedial measures and to pay $150 million to compensate investors. By distributing the money under a single distribution plan, administrative costs are substantially reduced.
The claims administrator responsible for distributing the funds paid by BMS to compensate injured shareholders is The Garden City Group (Garden City), 105 Maxess Road, Melville, NY 11747-3836. Questions regarding the distribution may be directed to Garden City at 1-800-327-3664.
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For further information contact:
Daniel R. Gregus (312) 353-7423
Assistant Regional Director, Midwest Regional Office
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