| Company: | Baxter International Inc |
| Ticker Symbol: | BAX |
| Class Period: | Sep-17-09 to May-3-10 |
| Date Filed: | Sep-21-10 |
| Lead Plaintiff Deadline: | Nov-20-10 |
| Court: | Northern District of Illinois |
| Allegations: | |
The complaint charges Baxter and certain of its officers and directors with violations of the Securities Exchange Act of 1934. Baxter, through its subsidiaries, develops, manufactures and markets products for people with hemophilia, immune disorders, infectious diseases, kidney disease, trauma, and other chronic and acute medical conditions.
The complaint alleges that during the Class Period, defendants issued materially false and misleading statements regarding the Company's plasma-derivative products business. Notwithstanding changes in the industry that would inhibit Baxter's growth, defendants assured investors that the Company's recent improvements in gross margin were not only sustainable but could even expand. Defendants further issued materially false and misleading statements regarding the remediation of the Company's COLLEAGUE infusion pump ("COLLEAGUE pump"). Specifically, defendants failed to disclose that Baxter was not complying with the terms of a June 2006 consent decree it had entered into with the U.S. Food and Drug Administration ("FDA"). As a result of defendants' false and misleading statements about the Company's growth and products, Baxter stock traded at artificially inflated prices during the Class Period, reaching a high of $61.71 per share on January 14, 2010.
On April 22, 2010, the Company reported its first quarter 2010 financial results, lowering its revenue and earnings outlook for 2010. Baxter 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, Baxter's stock collapsed $7.82 per share to close at $51.13 per share on April 22, 2010, a one-day decline of over 13%. Then, on May 3, 2010, Baxter announced that the FDA had ordered the Company to recall its COLLEAGUE pumps pursuant to its June 2006 consent decree. In response, the FDA issued its own release concerning Baxter's recall, indicating the action was necessary due to the Company's "longstanding failure to correct many serious problems with the pumps." On this news, Baxter's stock declined $2.42 per share to close at $45.08 per share on May 4, 2010, a one-day decline of over 5% and a 27% decline from its Class Period high of $61.71 per share.
If you acquired the securities of the defendants during the Class Period you may, no later than the Lead Plaintiff Deadline shown above, request that the Court appoint you as lead plaintiff through counsel of your choice. You may also choose to remain an absent class member. A lead plaintiff must meet certain requirements.
