* Appeals court revives $6.7 billion case dismissed in 2024

* Bristol Myers accused of slow-walking drug approvals to

avoid big payout

* Lawyers for Bristol Myers, former Celgene shareholders not

available for comment

*

By Jonathan Stempel

NEW YORK, Aug 13 (Reuters) - A U.S. federal appeals court

said a judge erred in dismissing a $6.7 billion lawsuit accusing

Bristol Myers Squibb ( BMY ) of cheating former Celgene

shareholders by delaying federal approval for three drugs,

including the cancer treatment Breyanzi.

In a 3-0 decision on Thursday, the 2nd U.S. Circuit Court of

Appeals in Manhattan said UMB Bank was entitled to

represent the Celgene shareholders as a trustee despite an error

in how it was appointed.

Bristol Myers and its lawyers did not immediately respond to

requests for comment. UMB and its lawyers did not immediately

respond to similar requests.

Thursday's decision revived a lawsuit that U.S. District Judge

Jesse Furman in Manhattan dismissed in September 2024. It was

not immediately clear how the decision affected UMB's similar

lawsuit raising several new claims against Bristol Myers, and

which Furman let proceed last December.

BRISTOL MYERS ACCUSED OF BEING TOO SLOW

The case arose from Bristol Myers' purchase of Celgene for

$80.3 billion in 2019.

Celgene shareholders who held "contingent value rights"

(CVR) were entitled to an extra $9 per share in cash if Bristol

Myers won timely U.S. Food and Drug Administration approvals for

Liso-cel, which is sold as Breyanzi, and the drugs Ozanimod and

Ide-cel.

Some CVR holders grew concerned that Bristol Myers would

miss the deadlines to avert a big payout, and hired UMB to

replace an earlier trustee.

UMB ultimately accused the Princeton, New Jersey-based

drugmaker of failing to use "diligent efforts" to win approvals,

and wrongly delisting the CVRs from the New York Stock Exchange

before holders could enforce their rights.

Bristol Myers won FDA approval for Breyanzi to treat

non-Hodgkin lymphoma on February 5, 2021, five weeks after the

relevant deadline.

DRUGMAKER 'NOT CONFUSED'

The appeals court said UMB had standing to sue because

Bristol Myers, the prior trustee and a majority of the CVRs'

"beneficial owners" approved UMB's appointment, though the

investors were not "registered" owners as defined in the CVR

agreement.

"Bristol Myers was not confused about the status of the

investors who purported to appoint UMB," Circuit Judge Beth

Robinson wrote.

In his December ruling, Furman allowed Kansas City,

Missouri-based UMB to pursue some claims against Bristol Myers,

including breach of contract and failure to act in good faith.