If you purchased or otherwise acquired the securities of Baxter during the Class Period, you may move the Court for appointment as lead plaintiff by no later than January 24, 2020. A lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation. Your share of any recovery in the actions will not be affected by your decision of whether to seek appointment as lead plaintiff. You may retain Lieff Cabraser, or other attorneys, as your counsel in the action.
Background on the Baxter Securities Class Litigation
Baxter, based in Deerfield, Illinois, provides a broad portfolio of essential healthcare products, including acute chronic dialysis therapies, sterile intravenous (IV) solutions, infusion systems and devices, parenteral nutrition therapies, inhaled anesthetics, generic injectable pharmaceuticals, and surgical hemostat and sealant products.
The action alleges that during the Class Period, Baxter and certain of its officers made materially false and/or misleading statements and/or failed to disclose that: (i) 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 Generally Accepted Accounting Principles ("GAAP") and enabled intra-Company transactions to be undertaken after the related exchange rates were already known; 2) the Company lacked effective internal control over its financial reporting; (3) as a result, the Company's financial statements were misstated and would likely necessitate correction or amendment; (4) due to the Company's internal investigation, Baxter would not be able to timely file its quarterly report for the period ending September 30, 2019 with the Securities and Exchange Commission ("SEC") on Form 10-Q in a timely manner; and (5) as a result of the foregoing, Baxter and its officers' statements about the Company's business and operations lacked a reasonable basis at all relevant times.
On October 24, 2019, Baxter announced that it "recently began an investigation into certain intra-Company transactions undertaken for the purpose of generating foreign exchange gains or losses," and that according to the Company, "[t]hese transactions used a foreign exchange rate convention historically applied by the Company that was not in accordance with generally accepted accounting principles ("GAAP") and enabled intra-Company transactions to be undertaken after the related exchange rates were already known." The Company also admitted that these intra-Company transactions had "resulted in certain misstatements in the Company's previously reported non-operating income related to net foreign exchange gains" and acknowledged that upon completion of its investigation, "the Company expects to either amend its periodic reports previously filed with the SEC to include restated financial statements that correct those misstatements, or include in reports for future periods restated comparative financial statements that correct those misstatements." Following this news, the price of Baxter common stock fell $8.87 per share, or 10.1%, from a close of $87.95 per share on October 23, 2019 to close at $79.08 per share on October 24, 2019, on elevated trading volume.
About Lieff Cabraser
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