SECURITIES AND EXCHANGE COMMISSION
WASHINGTON, D.C. 20549
------------
FORM 8-K
CURRENT REPORT
Pursuant to Section 13 or 15(d) of the
Securities Exchange Act of 1934
Date of Report (Date of earliest event reported) May 1, 1995
BRISTOL-MYERS SQUIBB COMPANY
(Exact name of registrant as specified in its charter)
Delaware 1-1136 22-079-0350
(State or other jurisdiction (Commission (IRS Employer
of incorporation) File Number) Identification No.)
345 Park Avenue, New York, New York 10154
- ----------------------------------- --------
(Address of principal executive offices) (Zip Code)
Registrant's telephone number, including area code (212) 546-4000
Not Applicable
(Former name or address, if changed since last report)
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Item 5. Other Events.
Legal Proceedings--Breast Implant Litigation.
See the attached press release (Exhibit 99.1) relating to the
pending settlement of breast implant product liability claims referred to in
Registrant's Annual Report on Form 10-K for the fiscal year ended December 31,
1994.
Item 7. Financial Statements and Exhibits.
(a), (b) None.
(c) The following exhibit is filed herewith:
Exhibit 99.1 - Copy of the Registrant's press release relating
to the Registrant's breast implant litigation with attachment
containing Judge Pointer's message to class members.
SIGNATURE
Pursuant to the requirements of the Securities Exchange Act of
1934, the Registrant has duly caused this report to be signed on its behalf by
the undersigned thereunto duly authorized.
BRISTOL-MYERS SQUIBB COMPANY
by
/s/ Alice C. Brennan
Name: Alice C. Brennan
Title: Vice President and
Secretary
Dated: May 3, 1995.
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Exhibit Index
Exhibit 99.1 - Copy of the Registrant's press release
relating to the Registrant's breast implant
litigation with attachment containing Judge
Pointer's message to class members.
EXHIBIT 99.1
Bristol-Myers Squibb Company
P.O. Box 400, Princeton, NJ 08543-4000 609/252-4000
Pharmaceuticals Consumer Products
Nutritional Products Medical Devices
Contact: Bristol-Myers Squibb Baxter Healthcare 3M
Jane A. Kramer Jill Carter Marcia Arko
609/252-5185 708/948-4555 612/733-5749
For Release: May 1, 1995
New York, NY -- Bristol-Myers Squibb Company (NYSE;BMY) today
announced that, at the request of the federal judge overseeing the pending
settlement of breast implant litigation against the company, its subsidiary
Medical Engineering Corporation, and other defendants, the company would
participate in negotiations with the other parties to the settlement
agreement, looking toward modification of the settlement. Judge Sam C.
Pointer, Jr. of the U.S. District Court for the Northern District of
Alabama informed counsel for the parties that preliminary information from
claims filed during the settlement process leads him to believe that the
total amount of the "current claims" portion of the settlement that are
likely to be approved for payment would substantially exceed the amounts
allocated for that purpose. Under the current settlement agreement,
approximately $1.2 billion of the $4.25 billion settlement total is
presently allocated to this "current claims" fund. The company's share of
the total settlement is $1.15
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billion. The settlement agreement provides that if current claims do
exceed the amount allocated a reduction of the amount to be paid to
individual claimants would be required, permitting them to opt out of the
settlement. The agreement requires that before any such reduction, the
parties attempt to negotiate satisfactory adjustments to the settlement
agreement. If claimants opt out because of such reduction, defendants may
choose to withdraw from the settlement. Baxter Healthcare International
Corporation and 3M have indicated that they will join in such further
discussions and Bristol-Myers Squibb believes that all parties to the
settlement will respond favorably to Judge Pointer's request.
The company continues to believe that breast implant products produced
by its Medical Engineering Corporation subsidiary are safe and recent
scientific evidence confirms this. Nonetheless, the company also believes a
satisfactory global settlement would be a responsible resolution of the
breast implant litigation.
(NOTE TO EDITORS: Judge Pointer's anticipated message
is attached.)
050194/025
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Attachment
Based on a study of a sample of Current Disease Compensation claims,
Judge Pointer has concluded that the total amount of current claims likely
to be approved for payment would substantially exceed the $1.2 billion
presently committed under the settlement to pay such claims and that,
accordingly, amounts payable under the Disease Compensation Program would
be less than shown on the "grid".
The extent of reductions in grid amounts cannot be determined until
after this study has been completed and after Settlement Class Counsel and
the Settling Defendants have explored ways to minimize these potential
reductions, as by reallocating funds already committed to the settlement
and perhaps by obtaining additional contributions to the settlement from
the settling defendants or others. Once the extent of potential reductions
is known, all registered class members would, if the settlement is to
continue in place, be afforded a "second opt out" right so that, if
dissatisfied with the benefits afforded under a revised grid for the
Disease Compensation Program, they could withdraw from the settlement and
be able to pursue individually any breast-implant claims.
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Additional opt-outs could result in the settling defendants or the
plaintiffs withdrawing from the settlement.
Judge Pointer concluded that it would be fairer to class members to
require the parties to undertake further settlement negotiations now,
rather than to wait the many months needed to process all of the thousands
of Current Disease Compensation claims. Accordingly, the parties have
commenced these negotiations as required by the settlement. Judge Pointer
has directed that the negotiations be concluded without undue delay and
that, at approximately two week intervals, he would determine whether
further negotiations appeared to be warranted.
Whatever the results of these negotiations, it is anticipated that the
Claims' Office will continue to review and evaluate the Current Disease
Compensation claims as quickly as can be done with fairness and accuracy.
To reduce the time this enormous undertaking will require, the Claims'
Office is considering a substantial increase in the number of persons
reviewing claims and, if this appears feasible, it expects to complete its
evaluation of all current claims during the first half of next year.
Completion of this
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processing, while important, will not delay the time for sending any
notices of a second opt-out to class members.
Class members are reminded that the deadline for submitting
Preliminary Claim Forms relating to Designated Funds I-III is June 1st.
