“The case is now over,” said one of the lead plaintiff lawyers, Charles Tompkins, a Chicago-based partner at Williams Montgomery & John. “We spent many years litigating the case, and we feel confident that the settle is a favorable result for all involved.”
Money from the combined $128 million settlement fund will be distributed on a pro-rata basis to the roughly 2,000-member class, none of whom has raised objections to the agreement. The settlement covers sales activity from 2005 and 2009.
Baxter in 2013 booked $2.01 billion in net income on $15.26 billion in revenue. The company raked in $5.56 billion in combined sales from its hemophilia and biotherapeutics lines, both of which fall within its bioscience segment, which took in $6.56 billion.
The company said in March it plans to split into two firms, with the medical products segment — an $8.70 billion business in 2013 — retaining the Baxter name and headed by current CEO Robert Parkinson, and the as-yet unnamed bioscience segment led by Ludwig Hantson, its current president.
The spinoff likely will occur in mid-2015.
Baxter earned $556 million in the first quarter, or $1.01 per share, on $3.95 billion in sales. Excluding extraordinary items, it earned $1.19 a share, beating out the consensus of eight analysts polled by Bloomberg.
The stock was trading at about $73.18 at midday today.
"Baxter settles class-action suit for $64 million, denies wrongdoing" originally appeared in Crain's Chicago Business.