NEW YORK, Oct. 24, 2019 /PRNewswire/ -- Kaplan Fox & Kilsheimer LLP (www.kaplanfox.com) has been investigating potential claims for violations of the federal securities laws on behalf of investors who purchased shares of Baxter International Inc. (BAX).
On October 24, 2019, before the opening of trading, Baxter disclosed the following in a report filed with the SEC:
As announced in the press release dated October 24, 2019, the Company recently began an investigation into certain intra-Company transactions undertaken for the purpose of generating foreign exchange gains or losses. These transactions used a foreign exchange rate convention historically applied by the Company that was not in accordance with generally accepted accounting principles and enabled intra-Company transactions to be undertaken after the related exchange rates were already known. The Company is being assisted in the investigation by experienced external counsel and consultants.
These intra-Company transactions resulted in certain misstatements in the Company's previously reported non-operating income related to net foreign exchange gains. Within "Other (income) expense, net," the Company previously reported net foreign exchange gains of $8 million, $113 million, $28 million, $50 million, $73 million, and $22 million, for the years 2014, 2015, 2016, 2017, 2018, and the first half of 2019, respectively. The investigation is not limited to these periods and any subsequent adjustments to previously reported foreign exchange gains and losses may alter those non-operating income results.
The Audit Committee of the Company's Board of Directors is overseeing the investigation with the assistance of independent, experienced external advisors. The Company voluntarily advised the staff of the Securities and Exchange Commission ("SEC") that the internal investigation is underway and intends to provide additional information to the SEC as the investigation progresses. The Company does not expect to file its Quarterly Report on Form 10-Q for the period ended September 30, 2019 on a timely basis. The investigation is in its early stages and the Company cannot predict its duration or outcome.
On October 24, 2019, Baxter shares declined as much as 11% on heavier than usual volume.
If you purchased Baxter shares, and would like to discuss our investigation, please contact us by emailing email@example.com or by calling 800-290-1952.
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Kaplan Fox & Kilsheimer LLP, with offices in New York, San Francisco, Los Angeles, Chicago and New Jersey, has decades of experience in prosecuting investor class actions. For more information about Kaplan Fox & Kilsheimer LLP, you may visit our website at www.kaplanfox.com. If you have any questions about your rights or interests, please contact:
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