aibioBaxter's Hillrom unit faces Linet antitrust suit, a bed-buyer appeal and two DOJ requests
Tickers BAX
Linet Americas sued Hill-Rom Holdings, Hill-Rom Company and Hill-Rom Services in 2021. A dismissed class action is on appeal, and a DOJ demand and subpoena remain open.
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) reported in its 10-Q filed July 30, 2026 that its Hillrom unit is still defending an antitrust suit by a competitor, Linet Americas, Inc., over hospital beds. A putative class action by a hospital that bought beds was dismissed with prejudice and is on appeal. Baxter also disclosed two open Department of Justice requests addressed to Hillrom.
Linet filed its complaint on December 28, 2021 in the U.S. District Court for the Northern District of Illinois, according to Baxter's 10-K filed February 12, 2026. The defendants are Hill-Rom Holdings, Inc., Hill-Rom Company, Inc. and Hill-Rom Services, Inc. The same three entities were named in the class action that Reading Hospital filed in the U.S. District Court for the Eastern District of Pennsylvania on June 20, 2024. The filings give no case numbers.
The case
Linet alleges that Hillrom violated Sections 1 and 2 of the Sherman Antitrust Act, Section 3 of the Clayton Act and the Illinois Antitrust Act through anti-competitive conduct in alleged markets for standard, ICU and birthing beds. Reading Hospital made similar federal claims on behalf of itself and all direct purchasers of those beds from Hill-Rom starting at least as early as June 20, 2020. The 10-Q does not state the damages either plaintiff seeks.
The government matters are separate. In October 2022 the Department of Justice issued a civil investigative demand to Hillrom requesting documents and information about compliance with the False Claims Act and the Anti-Kickback Statute. In October 2024 it issued a subpoena that substantially overlaps the demand and asks for more documents about Hillrom's respiratory health business. Baxter says it is cooperating fully, and notes that the DOJ often issues such requests when investigating alleged violations of federal health care laws.
Defendants
The three Hill-Rom entities named above are the defendants in the Linet and Reading Hospital cases. The DOJ demand and subpoena are addressed to Hillrom. The 10-Q names no individuals and lists only the Hill-Rom entities as defendants in those two cases.
Where it stands
In the Linet case, Hillrom answered on January 28, 2022 and on May 27, 2022 filed a motion challenging certain aspects of the plaintiff's case. The court denied it on January 17, 2024, subject to further discovery. The 10-Q says fact and expert discovery are ongoing.
In the Reading Hospital case, the plaintiff filed an amended complaint on September 30, 2024, and Hillrom moved to dismiss on November 8, 2024. The court granted the motion and dismissed the case with prejudice on September 12, 2025. Reading Hospital filed a notice of appeal on October 9, 2025, and the 10-Q says appellate briefing is complete.
Related matters
Lawsuits filed since December 2023 in the Circuit Court of Cook County, Illinois alleged injuries from ethylene oxide used by several companies, including Baxter's historic use at its Round Lake, Illinois facility. The parties resolved the filed cases for an amount not material to Baxter, and in June 2026 the court dismissed with prejudice all pending ethylene oxide matters as to Baxter.
Why it matters to shareholders
Baxter says it has established reserves for certain of the matters it describes, and that its total recorded reserves for legal and environmental matters were $39 million at June 30, 2026, down from $47 million at year-end. It does not say how much relates to Hillrom. The company believes it has valid defenses but warns that it may incur material judgments or settlements. The 10-Q does not estimate a loss for the antitrust cases or the DOJ requests.