8-KOther EventsExhibits & Filings

BRISTOL MYERS SQUIBB CO 8-K Report, Corporate Update (Jun 18, 2007)

Filed June 18, 2007For Securities:BMYCELG-RIBMYMP

Summary

Bristol-Myers Squibb Company (BMY) announced on June 15, 2007, the expiration of its Deferred Prosecution Agreement (DPA) with the U.S. Attorney's Office for the District of New Jersey. This agreement, initially entered into on June 15, 2005, related to issues concerning wholesaler inventory and accounting practices. The U.S. Attorney's Office has indicated its intent to seek a dismissal with prejudice of the criminal complaint that was filed as part of the DPA. While the DPA has expired, Bristol-Myers Squibb will continue its cooperation with the U.S. Attorney's Office concerning any pending matters. This development signifies the conclusion of a significant legal overhang for the company. Investors can view this expiration as a positive step towards resolving past compliance issues and a potential indicator of improved corporate governance, although ongoing cooperation obligations remain.

Key Highlights

  • 1Bristol-Myers Squibb's Deferred Prosecution Agreement (DPA) with the U.S. Attorney's Office expired on June 15, 2007.
  • 2The U.S. Attorney's Office plans to seek dismissal with prejudice of the criminal complaint related to the DPA.
  • 3The criminal complaint stemmed from issues concerning wholesaler inventory and accounting matters.
  • 4The Company is required to continue cooperating with the U.S. Attorney's Office on pending matters.
  • 5An associated press release dated June 14, 2007, provides further details.
  • 6This expiration marks the resolution of a significant legal agreement for the company.

Frequently Asked Questions

The expiration of the DPA signifies that Bristol-Myers Squibb has successfully met the terms and conditions set forth in the agreement with the U.S. Attorney's Office. This typically means a significant legal matter and potential criminal charges related to the original issues (wholesaler inventory and accounting) are being resolved.

The U.S. Attorney's Office intends to seek a dismissal with prejudice of the criminal complaint filed under the DPA. This implies that the government does not plan to pursue these specific charges further. However, the company is still obligated to cooperate with the U.S. Attorney's Office regarding any pending matters.

The DPA was entered into in June 2005 and related to concerns about Bristol-Myers Squibb's wholesaler inventory practices and various accounting matters. The expiration indicates the company has addressed these issues to the satisfaction of the U.S. Attorney's Office.

While this specific DPA has expired and the related criminal complaint is expected to be dismissed, the company still has an obligation to cooperate in connection with pending matters being pursued by the U.S. Attorney's Office. This means there may still be ongoing cooperative efforts, but the direct legal threat from this particular DPA has concluded.