Baxter International Inc. Investor Files Lawsuit Over Alleged Securities Laws Violations by Baxter
An investor in Baxter International Inc. (NYSE:BAX) securities filed a lawsuit in the United States District Court for the Northern District of Illinois against Baxter International over alleged violations of Federal Securities Laws.
Baxter International Inc., located in Deerfield, Illinois, through its subsidiaries, develops, manufactures and markets products that save and sustain the lives of people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions.. According to the complaint the plaintiff alleges that Baxter International Inc and certain of its officers and directors violated the Securities Exchange Act of 1934 by issuing between September 17, 2009 and May 3, 2010 materially false and misleading statements regarding its plasma-derivative products business. Baxter International’s revenue increased over the past four years from $10.378billion in 2006 to $12.562billion in 2009. Its Net Income increased from $1.397billion in 2006 to $2.205billion in 2009.
Then on April 22, 2010, Baxter Intl reported its first quarter 2010 financial results, lowering its revenue and earnings outlook for 2010. Baxter Intl. disclosed that the lowered guidance was due to continuing pressures in its critical plasma-derivative products business, including loss of market share and the impact of healthcare reform legislation. On this news, so the lawsuit, Baxter Intl’s stock declined $7.82 per share to close at $51.13 per share on April 22, 2010, a one-day decline of over 13%. On May 3, 2010, Baxter International announced that the U.S. Food and Drug Administration (“FDA”) had ordered Baxter International to recall its COLLEAGUE infusion pumps pursuant to its June 2006 consent decree. In response, so the lawsuit, the FDA issued its own release concerning Baxter Intl’s recall, indicating the action was necessary due to Baxter International’s “longstanding failure to correct many serious problems with the pumps.” On this news, Baxter’s stock again declined $2.42 per share to close at $45.08 per share on May 4, 2010, a one-day decline of over 5%. Shares of Baxter International Inc. (NYSE: BAX) traded recently at $47.70 per share, down from its 52weekHigh of $61.88 per share.


