With a tip of the hat to financial reality, the timing of the reduced guidance is suspicious. Given legal positioning, BMY may now claim huge losses in any further legal action. Why did they not choose to identify these potential damages in the past and reflect those scenarios in previous guidance?
Most investors may be able to analyze an operating company. But how do you analyze a negative legal perspective that develops over time?
Only management could identify the risk and quantify it for investors. As a result, many have been flying blind.
BMY 1-yr chart: