A lawsuit on behalf of investors in Baxter International, who purchased BAX shares during the period between September 17, 2009 and May 3, 2010, alleging securities laws violations by Baxter Intl. was filed last month. Meanwhile an investigation on behalf of current long term investors in Baxter International Inc. (NYSE:BAX), including those who purchased also prior to September 2009 and presently continue to hold those BAX shares, over possible breaches of fiduciary duty was announced.
According to the complaint filed in the United States District Court for the Northern District of Illinois the plaintiff alleges on behalf of those, who purchased Baxter International Inc. (Public, NYSE:BAX) common stock during the period between September 17, 2009 and May 3, 2010, that Baxter International Inc 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. The investigation by a law firm on behalf of current Baxter International long term investors, including those who purchased also prior to September 2009 and presently continue to hold those BAX shares, focuses on potential breaches of fiduciary duty by certain officers and directors of Baxter in connection with the alleged securities laws violations.
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 Intls 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 Intls recall, indicating the action was necessary due to Baxter Internationals longstanding failure to correct many serious problems with the pumps. On this news, Baxters 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 $49.42 per share, down from its 52weekHigh of $61.88 per share.