Health & Fitness
Health and Fitness
Health and Fitness
Thu, September 23, 2010
Wed, September 22, 2010
Tue, September 21, 2010
Robbins Geller Rudman & Dowd LLP Files Class Action Suit against Baxter International Inc.
SAN DIEGO--([ BUSINESS WIRE ])--Robbins Geller Rudman & Dowd LLP (aRobbins Gellera) ([ http://www.rgrdlaw.com/cases/baxterintl/ ]) today announced that a class action has been commenced on behalf of an institutional investor in the United States District Court for the Northern District of Illinois on behalf of purchasers of Baxter International Inc. (aBaxtera) (NYSE:BAX) common stock during the period between September 17, 2009 and May 3, 2010 (the aClass Perioda).
"longstanding failure to correct many serious problems with the pumps."
If you wish to serve as lead plaintiff, you must move the Court no later than 60 days from today. If you wish to discuss this action or have any questions concerning this notice or your rights or interests, please contact plaintiffa™s counsel, Darren Robbins of Robbins Geller at 800/449-4900 or 619/231-1058, or via e-mail at [ djr@rgrdlaw.com ]. If you are a member of this class, you can view a copy of the complaint as filed or join this class action online at [ http://www.rgrdlaw.com/cases/baxterintl/ ]. Any member of the putative class may move the Court to serve as lead plaintiff through counsel of their choice, or may choose to do nothing and remain an absent class member.
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 Companya™s plasma-derivative products business. Notwithstanding changes in the industry that would inhibit Baxtera™s growth, defendants assured investors that the Companya™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 Companya™s COLLEAGUE infusion pump (aCOLLEAGUE pumpa). 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 (aFDAa). As a result of defendantsa™ false and misleading statements about the Companya™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, Baxtera™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 Baxtera™s recall, indicating the action was necessary due to the Companya™s alongstanding failure to correct many serious problems with the pumps.a On this news, Baxtera™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.
Plaintiff seeks to recover damages on behalf of all purchasers of Baxter common stock during the Class Period (the aClassa). The plaintiff is represented by Robbins Geller, which has expertise in prosecuting investor class actions and extensive experience in actions involving financial fraud.
Robbins Geller, a 180-lawyer firm with offices in San Diego, San Francisco, New York, Boca Raton, Washington, D.C., Philadelphia and Atlanta, is active in major litigations pending in federal and state courts throughout the United States and has taken a leading role in many important actions on behalf of defrauded investors, consumers, and companies, as well as victims of human rights violations. The Robbins Geller Web site ([ http://www.rgrdlaw.com ]) has more information about the firm.
