Celgene ($CELG) $239M Investor Settlement
Celgene has agreed to settle $239 million with $CELG investors to resolve claims that it misled them about the development progress and regulatory outlook of three key drug products.
Outline:
Between 2015 and 2018, Celgene repeatedly stated that its drug pipeline was progressing toward regulatory approval and future sales. However, each of the company’s three key products encountered problems: GED-0301 failed in Phase III trials, the FDA issued a Refusal to File for ozanimod, and sales guidance for Otezla was lowered. Following these developments, $CELG declined sharply, and investors filed a lawsuit against the company.
Timeline:
Between April 2015 and October 2017: Celgene promoted GED-0301 as a major growth driver.
In October 2017: Celgene halted GED-0301 after trial failure, slashed its financial guidance, and $CELG fell 16%.
On February 27, 2018: the FDA declined to review ozanimod’s application.
In April 2018: Celgene warned of reduced Otezla growth.
In May 2018: Investors filed a class action lawsuit against Celgene.
On December 19, 2025: Celgene agreed to settle for $239 million with its investors, and the court approved all of the settlement’s terms.
In January 2026: The court set April 13, 2026, as the deadline to submit claims for the settlement.
Background:
For years, Celgene Corporation was viewed as one of the leading companies in biotechnology, largely based on its late-stage drug pipeline. From 2015 through 2017, the company highlighted a “triple threat” of key assets: GED-0301, ozanimod, and Otezla.
In public filings and investor presentations, Celgene repeatedly described this pipeline as the foundation of its long-term growth strategy. Celgene’s leadership consistently characterized GED-0301 as a near-term growth driver.
However, in October 2017, the company abruptly terminated the program after a preplanned interim analysis showed the drug failed to demonstrate sufficient efficacy in Phase III trials.
One week later, Celgene cut its revenue guidance, citing a significant gap in its pipeline after ending the GED-0301 program. After the announcement, $CELG fell by approximately 16%.
Further setbacks followed in early 2018. In February, the FDA issued a Refusal to File letter for ozanimod, stating that the application lacked required preclinical pharmacology data.
Around the same time, the company disclosed that sales of Otezla were below expectations and lowered its long-term growth outlook.
Following these developments, $CELG declined by more than 9% in a single trading day.
After these events, in March 2018, investors filed a lawsuit against Celgene, claiming that the company’s public statements about its pipeline and growth prospects were misleading.
What Can Investors Expect Now?
Celgene has agreed to settle $239 million with $CELG investors to resolve claims that it misled them about the development progress and regulatory outlook of three key drug products.
Frequently Asked Questions
All persons and entities who purchased the common stock of Celgene between April 27, 2017 and April 27, 2018, inclusive, and were damaged thereby.
No, if you have purchased securities within the class period, you are eligible to participate.
You can participate in the settlement and retain (or sell) your securities.
The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.
The final payout amount depends on your specific trades and the number of investors participating in the settlement.
If 100% of investors file their claims - the average payout will be $0.58 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $2.32 per share.
If you're eligible, you can file your claim directly from this case page by clicking the "Collect Payout" button.
More than 100 companies are currently paying out settlements. Connect your brokerage account to automatically check which ones you may have missed — or file manually for this case.
11th.com is an investor recovery company that helps investors track and collect securities class action settlements. We will:
1. Prepare documents for your payout.
2. Audit the claim and make sure you get the maximum possible payout.
3. File a claim with the settlement administration.
4. Correspond with the settlement administration to resolve emerging issues.
5. Deliver payout directly to your brokerage account.
There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.