PHILADELPHIA, Aug. 16, 2004 (PRIMEZONE) -- On August 13, 2004, the law firm of Berger & Montague, P.C. (http://www.bergermontague.com) filed a class action suit against Baxter International, Inc. ("Baxter" or the "Company") (NYSE:BAX) and certain of its officers, in the United States District Court for the Northern District of Illinois on behalf of all persons or entities who purchased Baxter securities from April 19, 2001 through July 21, 2004 (the "Class Period").
The complaint alleges that defendants violated Sections 10(b) and 20(a) of the Securities Exchange Act of 1934 and Rule 10b-5 promulgated thereunder by the SEC by issuing materially false and misleading statements throughout the Class Period that had the effect of artificially inflating the market price of the Company's securities.
More specifically, the complaint alleges that defendants failed to disclose and misrepresented the following material adverse facts which were known to defendants or recklessly disregarded by them: (1) that the Company's financial results during the Class Period were materially overstated; (2) that the overstatement occurred because the Company improperly and "incorrectly" recognized $40 million in revenues and maintained inadequate and "incorrect" provisions for bad debts relating to its Brazilian operations; (3) that as a result of this, the Company's financial results were in violation of Generally Accepted Accounting Principles ("GAAP"); (4) that the Company lacked adequate internal controls; and (5) that as a result of the above, the Company's financial results, including its net income figures, were materially and artificially inflated at all relevant times.
On July 22, 2004, Baxter announced that it planned to restate its financial results for the years 2001 through 2003, and for the first quarter of 2004. The restatement was primarily the result of incorrect revenue recognition and inadequate provisions for bad debts in Brazil during that period, which would result in a decrease in net income over the restatement period by an amount expected to be no more than $40 million, or $0.07 per diluted share. News of this shocked the market. Shares of Baxter fell $1.48 per share, or 4.59 percent, to close at $30.79 per share on unusually heavy trading volume.
If you purchased Baxter securities during the period from April 19, 2001 through July 21, 2004, inclusive, you may, no later than September 27, 2004, move to be appointed as a Lead Plaintiff. A Lead Plaintiff is a representative party that acts on behalf of other class members in directing the litigation. If you have sustained substantial losses in Baxter securities during the Class Period, please contact Berger & Montague, P.C. for a more thorough explanation of the Lead Plaintiff selection process.
The law firm of Berger & Montague, P.C. has over 50 attorneys, all of whom represent plaintiffs in complex litigation. The Berger firm has extensive experience representing plaintiffs in class action securities litigation and has played lead roles in major cases over the past 25 years which have resulted in recoveries of several billion dollars to investors. The firm has represented investors as lead counsel in actions against companies including Rite Aid, Sotheby's, Waste Management, Inc., Sunbeam, Boston Chicken and IKON Office Solutions, Inc. The standing of Berger & Montague, P.C. in successfully conducting major securities and antitrust litigation has been recognized by numerous courts. For example:
"Class counsel did a remarkable job in representing the class
interests." In Re: IKON Offices Solutions Securities Litigation.
Civil Action No. 98-4286(E.D. Pa.) (partial settlement for
$111 million approved May, 2000).
" . . . (Y)ou have acted the way lawyers at their best ought to
act. And I have had a lot of cases . . . in 15 years now as a
judge and I cannot recall a significant case where I felt people
were better represented than they are here . . . I would say this
has been the best representation that I have seen." In Re:
Waste Management, Inc. Securities Litigation, Civil Action No.
97-C 7709 (N.D. Ill.) (settled in 1999 for $220 million).
If you purchased Baxter securities during the Class Period, please visit our website at www.bergermontague.com to view the complaint and join the class action or if you have any questions concerning this notice or your rights with respect to this matter, please contact: