CHICAGO, Sept. 3, 2002 (PRIMEZONE) -- Much Shelist Freed Denenberg Ament & Rubenstein, P.C. announces that it has sued Baxter International, Inc. ("Baxter" or the "Company") (NYSE:BAX) and certain of its officers and directors in the United States District Court for the Northern District of Illinois. The shareholder lawsuit is on behalf of all persons and entities who purchased Baxter securities during the period January 24, 2002 through July 18, 2002, inclusive ("Class Period").
The Complaint alleges that Baxter; Harry M. Jansen Kraemer, Jr., Baxter's Chairman of the Board and Chief Executive Officer; and Brian P. Anderson, Baxter's Chief Financial Officer and Senior Vice President, violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, and Rule 10b-5 promulgated thereunder, by issuing a series of materially false and misleading statements to the market during the Class Period. These alleged misstatements had the effect of artificially inflating the price of Baxter securities.
If you wish to discuss your rights and interests, have questions regarding this notice or have information relevant to the lawsuit, you may contact Carol V. Gilden or Michael E. Moskovitz at Much Shelist Freed Denenberg Ament & Rubenstein, P.C., by calling a toll-free number 1-800-470-6824, or by sending an e-mail to investorhelp@muchshelist.com. Your e-mail should refer to Baxter.
The complaint alleges that throughout the Class Period Baxter issued press releases representing that its BioScience and Renal divisions would grow their earnings by percentages in the high teens and high single digits, respectively, in 2002. The Complaint further alleges that these, and other, representations were materially false and misleading because they failed to disclose that the Company was experiencing serious problems with its BioScience and Renal divisions. Given these, and other undisclosed problems, defendants' repeated Class Period assurances of continued growth in 2002 were lacking in any reasonable basis when made.
On July 18, 2002, Baxter issued a press release regarding its results for the second quarter of 2002, announcing disappointing sales growth for the BioScience division and a decline in sales for the Renal division. Baxter also announced that it took a $51 million charge in connection with an acquisition and a $70 million impairment charge, reflecting a decline in the value of certain of the Company's investments. In response to the announcement, the price of Baxter common stock plummeted by 36.5%, falling from a closing price of $43.41 per share on July 17, 2002, to a closing price $32 per share the following day. During the Class Period, Baxter insiders sold a total of 435,700 Baxter common shares, reaping gross proceeds in excess of $23.7 million.
Plaintiff seeks to recover damages on behalf of all those who purchased Baxter securities during the Class Period (January 24, 2002 through July 18, 2002). If you purchased Baxter securities the Class Period and either lost money on the transactions or still hold the common stock, you may, if you meet certain other legal requirements, file a motion to serve as a lead plaintiff. You must file your motion no later than October 7, 2002.
A lead plaintiff is a representative party that acts on behalf of other class members in directing the litigation. In order to be appointed lead plaintiff, the court must determine that the class member's claim is typical of the claims of other class members, and that the class member will adequately represent the class. Under certain circumstances, one or more class members may together serve as "lead plaintiff." Your ability to share in any recovery is not, however, affected by the decision whether or not to serve as a lead plaintiff. The requirements for serving as a lead plaintiff are set forth in the Private Securities Litigation Reform Act of 1995 (15 U.S.C. Section 78u-4).
Much Shelist's history is one of experience, leadership and results. For more than 25 years, Much Shelist has represented plaintiffs in class action litigation in federal and state courts across the United States. The firm has successfully prosecuted cases involving securities fraud, antitrust violations, consumer fraud, unlawful business practices and insurance company fraud. Under Much Shelist's leadership, class members have obtained judgments and settlements in excess of $4 billion. Please contact the Much Shelist website for more information about the firm.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca