United States v. Frederick Schiff

In a widely publicized criminal action against two former officers of Bristol Myers Squibb (BMS), the U.S. Department of Justice alleged that the defendants’ role in alleged channel stuffing caused significant losses for BMS shareholders. Daniel R. Fischel and Compass Lexecon were retained by David Zornow, Larry Spiegel and others at Skadden Arps to assist in defending Frederick Schiff, the former CFO of BMS. We analyzed the government’s allegations and also the valuation consequences of the allegedly false disclosures and the effects on future profits of allegedly stuffing the wholesale channel with product. Last June, the Justice Department effectively dropped the charges against Schiff and his co-defendant. David Ross, Jessica Mandel, and Laurel Van Allen in Compass Lexecon’s Chicago office worked on this matter with Professor Fischel.