Baxter International, Inc. (BAX) Misled Investors Regarding the Impact of its Supply Chain Problems
A shareholder filed a class action on behalf of all persons and entities that purchased or otherwise acquired Baxter International, Inc. (NYSE: BAX) securities between May 25, 2022 and February 8, 2023. Baxter is a multi-national healthcare company, primarily focusing on products designed to treat kidney disease and other chronic and acute medical conditions.
According to the complaint, during the class period, defendants materially misrepresented and/or concealed the true nature and severity of supply chain problems it was encountering and the impact they were having on the Company’s current and expected earnings. Defendants’ failure to disclose Baxter’s true problems relating to its supply chain deceived investors about the Company’s true financial health and earnings.
On February 9, 2023, after making numerous statements assuring investors that it could operate successfully despite global challenges to its supply chain, Baxter revealed that it had not achieved control over its supply chain problems and that its earnings guidance had been unreliable for some time. Though defendants knew the supply chain issues were going to continue to be an insurmountable problem they strung the investing public along to prop up the Company’s share price. When the Company revealed the truth, Baxter’s stock price fell $5.54 per share, or over 12%, to close at $40.14 per share on February 9, 2023.
What Now: Similarly situated shareholders may be eligible to participate in the class action against Baxter International, Inc. Shareholders who want to act as lead plaintiff for the class must file their motion with the court by September 11, 2023. A lead plaintiff is a representative party acting on behalf of other class members in directing the litigation. You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.
All representation is on a contingency fee basis. Shareholders pay no fees or expenses.
