Bristol-Myers Sued Over Employee Savings Plan
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Bristol-Myers Squibb Co., which is restating $2 billion in revenue back to 2000, was accused in a lawsuit filed by workers Friday of mismanaging an employee savings plan by investing too heavily in company stock.
The drug maker used company stock to match employee contributions to the 401(k) savings plan, according to the suit, which also alleges that plan administrators failed workers by letting them buy the company’s shares through voluntary contributions. Company stock held in the plan lost $2 billion from the end of 2000 to the end of 2002.
The suit comes as several Bristol-Myers drugs have failed and U.S. prosecutors are investigating the company’s discounting strategy.
Bristol-Myers shares fell 24 cents to $23.14 in New York Stock Exchange trading.
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