CLASS ACTION UPDATE: Law Office of Brodsky & Smith, LLC Reminds Investors of Deadline in Class Action Against Baxter International (NYSE: BAX)

BALA CYNWYD, December 2, 2019 /Access Wire/ – Law office of Brodsky & Smith, LLC reminds investors of the deadline to file regarding claims against Baxter International (“Baxter” or the “Company”) (NYSE: BAX) for possible breaches of Federal Securities law.

On February 21, 2019, Baxter filed its annual report with the SEC for the year ended December 31, 2018, reporting net foreign exchange income of $73 million in 2018, $50 million in 2017, and $28 million in 2016.  Baxter further reported total net income of $1.624 billion in 2018, $717 million in 2017, and $4.965 billion in 2016, and net income (diluted) per share of $2.97 in 2018, $1.29 in 2017, and $9.01 in 2016. On April 25, 2019, Baxter issued a press release announcing its first quarter 2019 financial and operational results reporting net income of $347 million and net income (diluted) per share of $0.66 for the quarter, which was reiterated in its quarterly report filed with the SEC on May 8, 2019. Thereafter, on July 25, 2019, Baxter issued a press release announcing its second quarter 2019 financial and operational results reporting net income of $343 million and net income (diluted) per share of $0.66 for the quarter, which Baxter reiterated in its quarterly report filed with the SEC on July 30, 2019.

In each of the above-referenced financial reports, management represented that Baxter’s internal control over financial reporting was effective.

The truth was revealed on October 24, 2019, when Baxter revealed announced that it “recently began an investigation into certain intra-Company transactions undertaken for the purpose of generating foreign exchange gains or losses.”  According to Baxter, “[t]hese transactions used a foreign exchange rate convention historically applied by the Company that was not in accordance with generally accepted accounting principles [(“GAAP”)] and enabled intra-Company transactions to be undertaken after the related exchange rates were already known.”

Following 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 filed 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.

If you purchased shares of Baxter between February 21, 2019 and October 23, 2019 and wish to discuss the legal ramifications of  the investigation, or have any questions, you may e-mail or call the law office of Brodsky & Smith, LLC who will, without obligation or cost to you, attempt to answer your questions. The deadline for filing is January 24, 2020. You may contact Marc Ackerman, Esquire or Jordan Schatz, Esquire at Brodsky & Smith, LLC, Two Bala Plaza, Suite 510, Bala Cynwyd, PA 19004, or by calling toll free 877-534-2590.

Brodsky & Smith, LLC is a litigation law firm with extensive expertise representing shareholders throughout the nation in securities and class action lawsuits. The attorneys at Brodsky & Smith have been appointed by numerous courts throughout the country to serve as lead counsel in class actions and have successfully recovered millions of dollars for our clients and shareholders. Attorney advertising. Prior results do not guarantee a similar outcome.