City of Hallandale Beach Police Officers’ and Firefighters’ Personnel Retirement Trust v. Baxter International, Inc.

This is a securities class action alleging that between February 23, 2022 and February 12, 2026, inclusive (the “Class Period”), Baxter International, inc. (“Baxter” or the “Company”) and certain of the Company’s current and former senior executives (collectively, “Defendants”), made materially misstatements regarding one of the Company’s flagship products, the Novum infusion pump system, in violation of Sections 10(b) and 20(a) of the Exchange Act of 1934, 15 U.S.C. §§ 78j(b), 78t(a), and U.S. Securities and Exchange Commission Rule 10b-5 promulgated thereunder, 17 C.F.R. § 240.10b-5. Lead Plaintiffs Nebraska Investment Council, National Elevator Industry Pension Plan, and Louisiana Sheriffs’ Pension & Relief Fund (“Plaintiffs”) have been appointed to lead the action.

Baxter’s Alleged Fraud

Baxter develops, manufactures, and markets medical products and devices, including the Company’s flagship Novum IQ Large Volume Pump (“Novum LVP”), which is used for controlled delivery of intravenous (“IV”) fluids. In November of 2020, the Novum LVP was cleared for sale in Canada, and Baxter launched the device to Canadian customers.  In April 2024, Baxter expanded its rollout of the Novum LVP into the U.S. market after receiving approval from the Food and Drug Administration (“FDA”).

Plaintiffs allege that, throughout the Class Period of February 23, 2022 through February 12, 2026 (inclusive), Defendants made numerous materially false and misleading statements and omissions concerning the safety and performance of the Novum LVP, including that the device was successfully functioning for customers in Canada and the U.S. In truth, however, the Novum LVP lacked precision and experienced widespread problems when used by customers because the device was susceptible to chronic under-infusion and over-infusion of IV fluids, putting patients at severe risk. As a result of these misrepresentations, Baxter common stock traded at artificially inflated prices throughout the Class Period.

The truth began to emerge on July 31, 2025, when Baxter disclosed a ship-hold on all shipments and installations of the Novum LVP due to problems with the pump, causing the Company’s stock price to decline by $6.29 per share, or 22.4%. Then, on October 30, 2025, Baxter revealed that the ship-hold would continue “beyond 2025,” causing an additional decline of $3.95 per share, or 17.6%. However, after both disclosures, Defendants continued to reassure investors that the pump remained safe and commercially viable. Finally, on February 12, 2026, Baxter disclosed that the ship-hold would extend through the end of 2026 and that potential solutions would require regulatory approval, causing an additional decline of $3.56 per share, or 15.99%.

On August 20, 2026, Plaintiffs filed an Amended Consolidated Class Action Complaint. Under the parties’ agreed schedule, Defendants’ anticipated motions to dismiss are due October 22, 2026. Plaintiffs’ opposition will be due December 18, 2026. Any reply by Defendants will be due January 22, 2027.