| COMPANY |
Baxter International Inc. |
| COURT |
United States District Court for the Northern District of Illinois |
| CASE NUMBER |
19-cv-07786 |
| JUDGE |
The Hon. Sara Lee Ellis |
| CLASS PERIOD |
February 21, 2019 - October 23, 2019 |
| SECURITY TYPE |
Common Stock |
Case Background:
On November 25, 2019, the initial complaint in this securities class action was filed against Baxter International Inc. (“Baxter” or the “Company”) and certain of Baxter’s directors and officers, asserting violations of Sections 10(b) and 20(a) of the Securities Exchange Act. This is a federal securities class action on behalf of all investors who purchased or acquired Baxter common stock from February 21, 2019 through October 23, 2019, both dates inclusive (the “Class Period”).
The complaint alleges that, throughout the Class Period, Defendants misrepresented and/or failed to disclose that: (1) certain intra-Company transactions, undertaken for the purpose of generating foreign exchange gains and losses, used foreign exchange rate conventions that were not in accordance with GAAP and enabled intra-Company transactions to be undertaken after the related exchange rates were already known; (2) Baxter lacked effective internal control over financial reporting; (3) as a result, Baxter's financial statements were misstated and would likely require correction or amendment; (4) due to Baxter's internal investigation, it would not be able to file its quarterly report for the period ending September 30, 2019, with the U.S. Securities and Exchange Commission on a Form 10-Q in a timely manner; and (5) as a result of the foregoing, Defendants' statements about Baxter's business and operations lacked a reasonable basis.
Current Status of Case:
Plaintiffs filed an amended complaint (the “Complaint”) on June 25, 2020. Defendants filed a Motion to Dismiss the Complaint on August 24, 2020. On January 12, 2021, the Court granted Defendants’ Motion to Dismiss with leave given to Plaintiffs to amend the Complaint. While the Court was considering the Motion to Dismiss, the parties had engaged settlement discussions. Those discussions led to an agreement to settle the action for $16,000,000.00. On April 1, 2021, Plaintiffs filed a Motion for Preliminary Approval of the Proposed Settlement, which the Court granted on April 20, 2021. On August 13, 2021, the Court issued an Order Approving the Settlement and entered Final Judgment. This action has concluded.
If you wish to discuss this action or have any questions concerning this notice or your rights or interests with respect to these matters, please contact Kessler Topaz Meltzer & Check, LLP: Jon Naji, Esq. (484) 270-1453; or via e-mail at info@ktmc.com. If you would like additional information about the suit, please click on the link "Submit Your Information" above and fill out the form as promptly as possible.