Baxter(US:BAX) Prnewswire·2025-12-12 16:04Core Viewpoint - The complaint against Baxter International alleges violations of federal securities laws due to misleading statements regarding the Novum LVP, which suffered systemic defects leading to serious patient risks [2]. Group 1: Allegations and Defects - The Novum LVP experienced systemic defects causing malfunctions such as underinfusion, overinfusion, and non-delivery of fluids, posing risks of serious injury or death to patients [2]. - Baxter was aware of multiple device malfunctions, injuries, and deaths related to these defects but failed to adequately address them [2]. - The company's attempts to remedy the situation through customer alerts were deemed insufficient as design flaws persisted, continuing to harm patients [2]. Group 2: Impact on Business Operations - Due to the defects, there was an increased risk that customers would be instructed to take existing Novum LVPs out of service, and Baxter would halt all new sales of these pumps [2]. - Baxter's statements regarding the safety, efficacy, product rollout, customer feedback, and sales prospects of the Novum LVPs were materially false and misleading [2]. Group 3: Market Reaction - The extent of the alleged fraud was revealed on July 31, 2025, when Baxter announced a voluntary and temporary pause in shipments and installations of the Novum LVP, leading to a 22.4% drop in stock price, closing at $21.76 on the same day [3].