According to the complaint filed September 21, 2010, 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. 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 November 30, 2011, the Honorable Sharon Johnson Coleman consolidated two similar actions, and granted the motion to appoint National Elevator Industry Pension Fund as lead plaintiff and approved its selection of Robbins Geller Rudman & Dowd LLP and Miller Law LLC as liaison counsel. On January 28, 2011, a Consolidated Amended Complaint was filed. A Consolidated Amended Complaint was filed on April 15, 2011. The defendants responded by filing a motion to dismiss on May 27, 2011.
On January 23, 2012, the Honorable Sharon Johnson Coleman signed the Order granting in part and denying in part defendants' motion to dismiss.
According to a Minute entry, on April 11, 2012 the Court grated defendant's motion to stay proceedings and stayed the remainder of this case pending appeal.
On August 27, 2015, the parties entered into a Settlement Agreement. This Settlement was preliminarily approved by the Court on September 18. On January 22, 2016, the Court granted final approval of the Settlement and dismissed this action.