In the matter of Baxter International, Inc., Admin. Proc. No. 3-20781 (Feb 22, 2022);
In the matter of Jeffrey Schaible, Admin. Proc. No. 3-20782 (Feb 22, 2022);
In the matter of Scott Bohaboy, Admin. Proc. No. 3-20783 (Feb 22, 2022)
THE DEADLINE FOR SUBMITTING A CLAIM FORM TO BE CONSIDERED TO RECEIVE A PAYMENT FROM THE BAXTER FAIR FUND HAS BEEN EXTENDED TO MARCH 8, 2024.
If you purchased or otherwise acquired shares of Baxter International common stock during the period from May 6, 2015, through October 23, 2019, inclusive, and suffered a loss according to the distribution plan approved by the Securities and Exchange Commision (the “Plan”), you may be eligible for a distribution payment from the Baxter Fair Fund.
The Baxter Fair Fund has been established in the three U.S. Securities and Exchange Commission administration proceedings set forth at the top of this page. You can read more about the proceedings and view the plan at: https://www.sec.gov/enforcement/information-for-harmed-investors/baxter.
All Claims and tax documents must be submitted so that they are postmarked or recieved by the Fund Administrator on or before March 8, 2024.
Persons who submitted a Claim in connection with the Related Class Action:
In general, if you submitted a claim in connection with the related class action, In Re Baxter International Inc. Securities Litigation, Case No. 1:19‑cv‑07786 (N.D. III.) (the “Class Action”) that was accepted in the Class Action, you will not have to submit a claim to be considered for a payment from the Baxter Fair Fund, but you must return the Taxpayer Certification Form included with the Plan Notice you were sent in the mail. Additional copies of the Tax Certification Form can be downloaded here. Your Taxpayer Certification Form must be submitted so that they are postmarked or received by the Fund Administrator by March 8, 2024.
If you submitted a claim in the Class Action and received a Claim Deficiency Notice with the Plan Notice sent to you in the mail, you must follow the instructions on the Claim Deficiency Notice to have your claim in the Class Action considered for a payment from the Baxter Fair Fund. You must also complete and return the Tax Certification Form included with the Plan Notice. Your written response and Taxpayer Certification Form must be submitted so that they are postmarked or received by the Fund Administrator by March 8, 2024.
If you did not submit a claim in connection with the Class Action or you submitted a claim in connection with the Class Action and you want to change that claim in any way; or if you submitted a claim in connection with the Class Action that was denied and you did not receive a Deficiency Notice with the Plan Notice that you were sent to you by mail, you must submit a completed Claim Form specific to the Baxter Fair Fund, postmarked or received by the Fund Administrator no later than March 8, 2024.
Click here to download a copy of the Claim Form.
Click here to download a copy of the Taxpayer Certification Form.
If you wish to file your claim online, you may click here.
If you wish to submit your Taxpayer Certification Form online, you may click here.
If you have any questions regarding the Plan Notice, another communication that you received, a claim that you submitted in the related Class Action, or the claims process for the Baxter Fair Fund, you may contact the Fund Administrator for more information toll-free at 844-787-6813; via email at Info@BaxterFairFundDistribution.com; or by writing to Baxter Fair Fund, Fund Administrator, P.O. Box 6700, Portland, OR 97228-6700.
Background:
On February 22, 2022, the U.S. Securities and Exchange Commission (the “Commission”) issued the Baxter Order instituting and simultaneously settling cease-and-desist proceedings against Baxter International, Inc. (“Baxter”). In the Baxter Order, the Commission found that, beginning in at least 2009 and continuing through July 2019, Baxter improperly leveraged its foreign exchange rate convention by engaging in intra-company transactions for the purpose of generating foreign exchange accounting gains or avoiding foreign exchange accounting losses (the “FX Transactions”). The FX Transactions had the effect of materially misstating Baxter’s net income as reported in public filings. On October 24, 2019, Baxter issued a press release announcing that it had begun conducting an internal investigation of previously reported non-operating income related to foreign exchange gains and losses.
In March 2020, Baxter restated its financial statements, which reduced its previously reported net income for 2017 through June 30, 2019, and retained earnings as of January 1, 2017, by $582 million, collectively. The Commission ordered Baxter to pay a civil money penalty of $18 million to the Commission and created the Baxter Fair Fund pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002, so the penalties paid, along with the disgorgement and interest paid, could be distributed to harmed investors.
Also on February 22, 2022, in two related matters the Commission instituted and simultaneously settled cease-and-desist proceedings against Jeffrey Schaible and Scott Bohaboy. During relevant times, Jeffrey Schaible (“Schaible”) was an employee in the Treasury department of Baxter, and Scott Bohaboy (“Bohaboy”) was its Treasurer. In the Schaible and Bohaboy Orders, the Commission found that the Respondents, among other things, caused Baxter’s violations of the federal securities laws. The Commission ordered Schaible to pay disgorgement, prejudgment interest, and a civil penalty totaling $189,359.00 and Bohaboy to pay a civil money penalty of $125,000. The Commission created a Fair Fund in each of the Schaible and Bohaboy Orders pursuant to Section 308(a) of the Sarbanes-Oxley Act of 2002 and further ordered those Fair Funds combined with the Baxter Fair Fund.
The Baxter Fair Fund includes the $18,314,359.00 paid by Baxter, Schaible, and Bohaboy, and the Baxter Fair Fund has been deposited at the United States Department of the Treasury for investment. Accrued interest and any assets directed to the Baxter Fair Fund by Court or Commission order, or otherwise, shall be added to, and become a part of, the Baxter Fair Fund.