7th Circ. Revives Baxter Investor Suit Over $588M Recall

Law360, Los Angeles (August 16, 2013, 3:59 PM ET) -- The Seventh Circuit revived a shareholder derivative suit accusing Baxter International Inc. directors of not correcting infusion pump problems that led to a recall costing the health care company $588 million, ruling Friday that the directors may have ignored a federal agency's instructions.

The appellate court found that lead plaintiff Westmoreland County Employee Retirement System had provided enough evidence alleging that the directors acted in bad faith by not fully correcting issues involving Baxter's Colleague Infusion Pumps from late 2008 through May 2010.

A lower court...
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