NEW YORK--(BUSINESS WIRE)--Bragar Eagel & Squire, P.C., a nationally recognized shareholder law firm, announces that a class action lawsuit has been filed in the United States District Court for the Northern District of Illinois on behalf of investors that purchased Baxter International, Inc. (NYSE: BAX) securities between February 21, 2019 and October 23, 2019 (the “Class Period”). Investors have until January 24, 2020 to apply to the Court to be appointed as lead plaintiff in the lawsuit.
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On October 24, 2019, the Company disclosed an internal probe into its currency trading practices. According to news reports, Baxter engaged in certain intra-Company transactions undertaken for the purpose of generating foreign exchange gains or losses which were not booked in accordance with generally accepted accounting principles. These intra-Company transactions allegedly resulted in certain misstatements in the Company’s previously reported non-operating income related to net foreign exchange gains. The Company also reported that it has advised the Securities and Exchange Commission SEC of the internal investigation and advised investors that the Company does not expect to file its quarterly report on Form 10-Q for the period ended September 30, 2019 on a timely basis.
On this news, the price of Baxter common stock declined $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.
The complaint, filed on November 25, 2109, alleges that throughout the Class Period, defendants made materially false and/or misleading statements, as well as failed to disclose material adverse facts, about the company’s business and operations. Specifically, 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) the Company lacked effective internal control over financial reporting; (3) as a result, the Company’s financial statements were misstated and would likely require correction or amendment; (4) due to the Company’s internal investigation, Baxter would not be able to file its quarterly report for the period ending September 30, 2019, with the SEC on Form 10-Q in a timely manner; and (5) as a result of the foregoing, defendants’ statements about the Company’s business and operations lacked a reasonable basis.
If you purchased Baxter International securities during the Class Period, are a long-term stockholder, have information, would like to learn more about these claims, or have any questions concerning this announcement or your rights or interests with respect to these matters, please contact Brandon Walker or Melissa Fortunato by email at firstname.lastname@example.org, or telephone at (212) 355-4648, or by filling out this contact form. There is no cost or obligation to you.
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