According to the Complaint, Baxter International Inc. provides a broad portfolio of essential healthcare products, including acute and 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 Complaint alleges that, throughout the Class Period, Defendants misrepresented and/or failed to disclose that: (1) 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 GAAP and enabled intra-Company transactions to be undertaken after the related exchange rates were already known; (2) Baxter lacked effective internal control over financial reporting; (3) as a result, Baxter's financial statements were misstated and would likely require correction or amendment; (4) due to Baxter's internal investigation, it would not be able to file its quarterly report for the period ending September 30, 2019, with the SEC on a Form 10-Q in a timely manner; and (5) as a result of the foregoing, defendants' statements about Baxter's business and operations lacked a reasonable basis.
On January 31, 2020, the Court issued an Order appointing Lead Plaintiffs and Counsel. Lead Plaintiffs filed an amended Complaint on June 25. Defendants filed a Motion to Dismiss the amended Complaint on August 24. On January 12, 2021, the Court issued an Order granting Defendants' Motion to Dismiss. Plaintiffs were given leave to amend the Complaint. On February 25, the parties notified the Court that they had reached a settlement in principle. The parties entered into a Stipulation and Agreement of Settlement on April 1. The Court granted preliminary approval of the Settlement on May 12. On August 13, the Court granted final approval of the Settlement and entered Final Judgment.