Bristol-Myers Squibb Executives Settle Channel Stuffing Charges

Case against the former CFO of Bristol-Myers Squibb and the former President of the company’s Worldwide Medicine Group, charged with orchestrating a fraudulent earnings management scheme that deceived investors. They allegedly caused the company to sell excessive amounts of its pharmaceutical products to wholesalers ahead of demand and improperly recognized revenue from $1.5 billion of such sales to its two largest wholesalers. Further, after earnings nonetheless fell short of internal targets, defendant Schiff allegedly caused the company to use “cookie jar” reserves to further inflate them.