Court Sides with Drugmaker in Lawsuit

The ruling is a win for Bristol-Myers Squibb and other companies that want to avoid lawsuits in state courts seen as more favorable to plaintiffs.

Plavix 2007 04 19 59493414d4e9b

WASHINGTON (AP) — The Supreme Court says hundreds of out-state-residents can't sue drugmaker Bristol-Myers Squibb Co. in California state court over adverse reactions to the blood thinner Plavix.

The justices ruled 8-1 that there was not a strong enough connection between the claims against the drugmaker and the company's ties to the state. The ruling is a win for Bristol-Myers Squibb and other companies that want to avoid lawsuits in state courts seen as more favorable to plaintiffs.

The case involved 575 non-California residents who joined 86 California residents in suing the New Jersey-based company. California's highest court ruled 4-3 that all the cases could move ahead in state court even if the specific claims were not connected to California because the company did other business in the state.

More in Regulation