Lenalidomide With or Without Dexamethasone in Treating Patients With Newly Diagnosed Multiple Myeloma

DISEASE CHARACTERISTICS: * Newly diagnosed multiple myeloma, meeting the following criteria: * Symptomatic disease * Previously untreated disease * Measurable or evaluable disease, defined by ≥ 1 of the following: * Serum monoclonal protein ≥ 1.0 g/dL * Monoclonal protein \> 200 mg by 24-hour urine electrophoresis * Serum immunoglobulin free light chain ≥ 10 mg/dL AND abnormal serum immunoglobulin kappa:lambda free light chain ratio * Monoclonal bone marrow plasmacytosis ≥ 30% (evaluable disease) * Measurable soft tissue plasmacytoma, not previously radiated * No monoclonal gammopathy of unknown significance or asymptomatic myeloma PATIENT CHARACTERISTICS: * ECOG performance status (PS) 0-2 (PS 3 allowed if secondary to pain) * ANC ≥ 1,500/μL * Platelet count ≥ 75,000/μL * Creatinine ≤ 2.0 mg/dL * Total bilirubin ≤ 1.5 mg/dL * Not pregnant or nursing * Negative pregnancy test * Fertile patients must use 2 effective forms of contraception 28 days prior to, during and 28 days after study treatment * Registered into the RevAssist® program and willing to comply with program requirements * Able to take prophylactic aspirin (325 mg/day) or warfarin or low molecular weight heparin * Willing to provide mandatory blood and bone marrow samples * Willing to return for follow up * No uncontrolled infection * No NYHA class III or IV heart failure * No active deep vein thrombosis that has not been therapeutically anticoagulated * No known hypersensitivity to thalidomide * No known HIV positivity * No known hepatitis type A, B, or C infection * No other prior active malignancy within the past 2 years, except currently treated basal cell or squamous cell carcinoma of the skin or carcinoma in situ of the cervix or breast * No development of erythema nodosum if characterized by a desquamating rash while taking thalidomide or similar drugs PRIOR CONCURRENT THERAPY: * At least 3 weeks since prior radiotherapy for solitary plasmacytoma * More than 28 days since other prior experimental drug or therapy * Prior clarithromycin, DHEA, anakinra, pamidronate, or zoledronic acid allowed * No prior lenalidomide * No prior cytotoxic chemotherapy * No prior corticosteroids (≥ 160 mg of dexamethasone or equivalent) for this disease * Prior corticosteroid for nonmalignant disease allowed * Concurrent corticosteroids allowed (≤ 20 mg/day of prednisone or equivalent) * Concurrent palliative radiotherapy for bone pain or fracture allowed * No other concurrent anticancer agents or treatments