Lenalidomide, Cyclophosphamide, and Dexamethasone in Treating Patients With Newly Diagnosed Multiple Myeloma

DISEASE CHARACTERISTICS: * Diagnosis of multiple myeloma * Newly diagnosed disease * Symptomatic disease * Measurable or evaluable disease, defined by ≥ 1 of the following criteria: * Serum monoclonal protein ≥ 1.0 g by protein electrophoresis * Monoclonal protein \> 200 mg by 24-hour urine electrophoresis * Serum immunoglobulin free light chain ≥ 10 mg/dL AND abnormal serum immunoglobulin kappa to lambda free light chain ratio * Monoclonal bone marrow plasmacytosis ≥ 30% (evaluable disease) * Measurable soft tissue plasmacytoma not previously irradiated * No monoclonal gammopathy of undetermined significance or smoldering myeloma PATIENT CHARACTERISTICS: * ECOG performance status (PS) 0-2 (ECOG PS 3 allowed if secondary to pain) * ANC ≥ 1,500/mm\^3 * Platelet count ≥ 75,000/mm\^3 * Hemoglobin ≥ 8.0 g/dL * Creatinine ≤ 2.5 mg/dL * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use effective double-method contraception (1 highly effective and 1 additional method) for 1 month before, during, and for 4 weeks after completion of study therapy * No uncontrolled infection * No other active malignancy * No other malignancies within the past 5 years except for currently treated basal cell or squamous cell carcinoma of the skin or carcinoma in situ of the cervix or breast * No NYHA class III-IV congestive heart failure * No untreated active deep vein thrombosis PRIOR CONCURRENT THERAPY: * At least 3 weeks since prior radiotherapy for solitary plasmacytoma * Prior clarithromycin, therapeutic dehydroepiandrosterone (DHEA), anakinra, pamidronate disodium, or zoledronic acid allowed * No prior cytotoxic chemotherapy * No prior corticosteroids (except for treatment of a nonmalignant disorder) * Concurrent corticosteroids (prednisone ≤ 20 mg/per day) allowed * No concurrent radiotherapy except palliative radiotherapy for a single painful bone lesion or fracture