BALA CYNWYD, Pa., Sept. 27, 2002 (PRIMEZONE) -- Shareholders of Baxter International Inc. (NYSE:BAX) ("Baxter" or the "Company") who desire to serve as a lead plaintiff in a shareholder class action lawsuit now pending in federal court in Illinois (02C5742) must submit an application with the Court by October 7, 2002, according to the law firm of Schiffrin & Barroway, LLP.
The lawsuit seeks damages for violations of the federal securities laws on behalf of all investors who purchased Baxter International Inc. securities between January 24, 2002 and July 18, 2002 (the "Class Period").
Schiffrin & Barroway, LLP has prosecuted shareholder class actions for over fourteen years and has recovered more than $1 billion for investors. If you are a shareholder of Baxter International Inc. and want to learn more about this lawsuit and about becoming a lead plaintiff, you may visit our website at http://www.sbclasslaw.com/cgi/signup.cgi.
The complaint alleges that the Illinois-based Baxter International Inc. 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 purchased Baxter International Inc. securities between January 24, 2002 and July 18, 2002, you may be a member of the class and have until October 7, 2002 to move the court to become a lead plaintiff. In order to serve as lead plaintiff, however, you must meet certain legal requirements. To be a member of the class, however, you do not need to take any action at this time. Should you decide to seek appointment as a lead plaintiff, you may retain Schiffrin & Barroway, or retain counsel of your choice.
To learn more about your rights and interests in this case and your ability to potentially recoup your losses, please contact Schiffrin & Barroway (Marc A. Topaz, Esq. or Stuart L. Berman, Esq.) directly at 888-299-7706 (toll free) or 610-822-2221, fax number 610-822-0002, e-mail at info@sbclasslaw.com or visit our website at www.sbclasslaw.com.
More information on this and other class actions can be found on the Class Action Newsline at www.primezone.com/ca