LITTLE ROCK, Ark., Sept. 27, 2002 (PRIMEZONE) -- The deadline for purchasers of Baxter International Inc. ("Baxter" or the "Company") (NYSE:BAX) publicly traded securities to move for lead plaintiff in a securities fraud class action recently brought against the Company is rapidly approaching. If you purchased Baxter securities between January 24, 2002 and July 18, 2002, inclusive (the "Class Period"), and you wish to be a lead plaintiff in the case, you must move to serve as lead plaintiff by filing a motion in the United States District Court for the Northern District of Illinois, Eastern Division by October 7, 2002. A copy of the complaint filed in this action is available from the Court, or can be viewed on the firm's website at http://www.cauleygeller.com/pr/baxter.pdf.
The complaint charges that defendants Baxter, Harry M. Jansen Kraemer, Jr. (CEO and Chairman) and Brian P. Anderson (CFO) 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 between January 24, 2002 and July 18, 2002. Among other things, 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, according to the complaint. 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. In addition, the Company 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 $43.41 per share close on July 17, 2002, to close at $32 per share on July 18, on extremely heavy trading volume. During the Class Period, Baxter insiders sold a total of 435,700 Baxter common shares, reaping gross proceeds in excess of $23.7 million.
If you bought Baxter publicly traded securities between January 24, 2002 and July 18, 2002, inclusive, and you wish to serve as lead plaintiff, you must move the Court no later than October 7, 2002. If you are a member of this class, you can join this class action online at http://www.cauleygeller.com/sign_up.html. Any member of the purported class may move the Court to serve as lead plaintiff through Cauley Geller or other counsel of their choice, or may choose to do nothing and remain an absent class member.
Cauley Geller is a national law firm that represents investors and consumers in class action and corporate governance litigation. It is one of the country's premiere firms in the area of securities fraud, with in-house finance and forensic accounting specialists and extensive trial experience. Since its founding, Cauley Geller has recovered in excess of two billion dollars on behalf of aggrieved shareholders. The firm maintains offices in Boca Raton, Little Rock, and San Diego.
If you have any questions about how you may be able to recover for your losses, or if you would like to consider serving as one of the lead plaintiffs in this lawsuit, you are encouraged to call or e-mail the Firm or visit the Firm's website at www.cauleygeller.com.
Cauley Geller Bowman & Coates, LLP Client Relations Department: Jackie Addison, Sue Null or Ellie Baker P.O. Box 25438 Little Rock, AR 72221-5438 Toll Free: 1-888-551-9944 E-mail: info@cauleygeller.com
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca