aibioBaxter faces two securities class actions and a derivative suit over Novum LVP statements
Tickers BAX
Suits in Illinois federal court allege misleading statements about Baxter's Novum LVP pump. The 10-Q names Baxter and unnamed officers; the derivative captions name Jose E. Almeida.
Key facts
- Company
- Baxter International Inc. (NYSE: BAX)
- News type
- Legal
- Primary source
- Baxter International 10-Q for the quarter ended June 30, 2026 (SEC EDGAR)
Baxter International (NYSE: BAX) disclosed in its 10-Q filed July 30, 2026 two putative securities class actions and a consolidated shareholder derivative suit, all in the U.S. District Court for the Northern District of Illinois. They concern public statements about its Novum IQ large volume pump (Novum LVP). The 10-Q says the court appointed a lead plaintiff and co-lead counsel in the class actions in June 2026 and that the derivative case is stayed.
The first class action, Electrical Workers Pension Fund, Local 103, I.B.E.W. v. Baxter International Inc. et al., was filed on October 16, 2025, according to Baxter's 10-K filed February 12, 2026. A second, City of Hallandale Beach Police Officers' and Firefighters' Personnel Retirement Trust v. Baxter International Inc., et al., was filed on December 3, 2025. Both name Baxter and certain current and former officers and employees. Two derivative complaints, Ryan Wood v. Jose E. Almeida, et al. and Kevin Gray v. Jose E. Almeida, et al., were filed in November 2025 and name certain current and former directors, officers and employees. The filings give no case numbers.
The case
The first plaintiff, which allegedly bought Baxter stock, sues for the period from February 23, 2022 to July 30, 2025. The second complaint extends the period through October 29, 2025. The 10-K says the plaintiffs allege violations of Sections 10(b) and 20(a) of the Securities Exchange Act and Rule 10b-5, through false and misleading statements and a failure to disclose material facts about Novum LVP. The derivative complaints allege, nominally on behalf of Baxter, breaches of fiduciary duty and violations of federal law in connection with public statements about the pump. The filings do not state the damages sought.
The 10-Q gives the product background. During 2025 Baxter began voluntary corrections of the Novum LVP, and the U.S. Food and Drug Administration classified them as Class I recalls. In July 2025 Baxter elected to stop distributing and installing the pump in the United States and Canada temporarily, except in cases of medical necessity.
Defendants
Baxter International Inc. is a defendant in the class actions. The 10-Q does not name the individual defendants. Baxter's 10-K filed February 23, 2022 shows that at the start of the class period José E. Almeida was chairman and chief executive officer and James K. Saccaro was executive vice president and chief financial officer. The derivative captions name Almeida, whose first name the 10-Q spells "Jose." The filings do not say whether Saccaro or anyone else is a defendant.
The 10-K filed February 12, 2026, the filing nearest the complaints, was signed by Andrew P. Hider as president and chief executive officer and Joel T. Grade as chief financial officer. Its directors were William A. Ampofo II, Jeffrey A. Craig, Patricia B. Morrison, Stephen N. Oesterle, M.D., Stephen H. Rusckowski, Nancy M. Schlichting, Brent Shafer (chair), Cathy R. Smith, Amy A. Wendell and David S. Wilkes, M.D. The filings do not say which of them are sued.
Where it stands
When the 10-K was filed, motions to appoint a lead plaintiff were pending. The court ruled in June 2026. The two derivative cases were consolidated in January 2026, and by court order the consolidated matter is stayed. Baxter has also received stockholder requests to inspect its books and records over statements about Novum LVP.
Why it matters to shareholders
Baxter says it records a liability when a loss is probable and can be reasonably estimated. Its total recorded reserves for legal and environmental matters were $39 million at June 30, 2026, against $47 million at December 31, 2025. The 10-Q does not separate out these suits. It adds that "litigation is inherently uncertain, excessive verdicts do occur," and the company may incur material judgments or settlements.
The business effect is stated separately. Baxter expects no meaningful sales of Novum LVP while the shipment and installation holds are in effect, and it calls the timing of their release uncertain. In December 2025 Baxter also received a Department of Justice civil investigative demand about its IV flexible containers, and says it is cooperating fully.