SCOTUS sides with BMS in jurisdictional case

In an 8-1 decision Monday, the U.S. Supreme Court ruled that out-of-state residents could not enter a case brought against Bristol-Myers Squibb Co. (NYSE:BMY) in California, reversing an earlier state court's decision that BMS's "extensive activities" in California gave the state specific jurisdiction over claims filed by nonresidents.

A group of plaintiffs, including 86 California residents and 592 residents from 33 other states, sued BMS in a California state court alleging the company's drug Plavix clopidogrel had damaged their health. BMS did not develop or manufacture Plavix in California, although it does sell the drug in the state. The nonresidents did not allege that they had specific ties to Plavix's use or sale in California, the opinion said...