1. Baxter is under investigation for misleading investors about Novum LVP safety. 2. Complaint alleges serious defects leading to patient risks and product malfunctions. 3. Baxter's responses to device issues were deemed inadequate and misleading. 4. Potential service interruptions and sales pauses for Novum LVPs may follow. 5. Class action suit filed indicates possible financial repercussions for Baxter.
FAQ
Why Very Bearish?
The investigation into misleading statements could severely impact investor confidence, akin to previous lawsuits that significantly affected stock prices in healthcare firms facing similar allegations.
How important is it?
The ongoing investigation and class action lawsuit could directly affect BAX's stock, based on historical trends where similar situations have led to substantial sell-offs.
Why Short Term?
The immediate legal actions and investigations usually prompt quick market reactions, especially in healthcare due to patient safety concerns.
Bragar Eagel & Squire Investigates Officers of Baxter International (NYSE: BAX) and Molina Healthcare (NYSE: MOH)
NEW YORK, Dec. 16, 2025 (GLOBE NEWSWIRE) — Bragar Eagel & Squire, P.C., a nationally recognized shareholder rights law firm, is conducting investigations into certain officers and directors of Baxter International, Inc. (NYSE: BAX) and Molina Healthcare, Inc. (NYSE: MOH). This investigation is being undertaken on behalf of long-term stockholders as part of an effort to uphold shareholder rights and evaluate potential claims against these companies.
Baxter International, Inc. (NYSE: BAX) Under Scrutiny
The investigation into Baxter International follows a class action complaint filed on October 16, 2025. The complaint alleges that during the class period, the company's management failed to disclose critical safety issues related to the Novum LVP (Large Volume Pump). Specifically, the allegations include:
- The Novum LVP suffered systemic defects leading to malfunctions such as underinfusion and overinfusion, potentially risking serious injury or death for patients.
- Baxter was aware of multiple device malfunctions, as well as injuries and fatalities, stemming from these defects.
- The company's attempts to remedy these defects through customer alerts were deemed inadequate.
- There was an increased risk that existing Novum LVPs would need to be taken out of service and that Baxter would halt all new sales of these pumps.
- As a result, Baxter's communications regarding product safety, efficacy, rollout, and customer feedback were materially false and misleading.
For more details on the investigation into Baxter, interested parties can visit the dedicated website.
Molina Healthcare, Inc. (NYSE: MOH) Investigation
In parallel, Bragar Eagel & Squire is examining Molina Healthcare following a class action complaint filed on October 3, 2025. This complaint alleges that executives failed to disclose critical information that adversely affected investors. Notable points include:
- Materially adverse facts about Molina's medical cost trend assumptions were not disclosed to investors.
- The company faced a dislocation between premium rates and medical costs.
- Molina's short-term growth was found to be contingent on reduced utilization of behavioral health, pharmacy, and inpatient services.
- Due to these factors, Molina’s financial guidance for fiscal year 2025 was likely to be revised downwards.
- Defendants’ optimistic statements about the company lacked a reasonable basis, making them materially misleading.
Investors seeking more information about the investigation into Molina Healthcare can find it at the relevant webpage.
About Bragar Eagel & Squire, P.C.
Bragar Eagel & Squire, P.C. is a well-established law firm with offices located in New York, South Carolina, and California. The firm specializes in representing both individual and institutional investors in securities, derivative, and commercial litigation. It also assists clients in consumer protection and data privacy matters. With a comprehensive national practice, the firm routinely engages in cases across both federal and state courts.
For additional information about Bragar Eagel & Squire, please visit www.bespc.com. Please note that attorney advertising is in effect, and prior results do not guarantee similar outcomes.
Contact Information
For further inquiries related to these investigations, contact:
Bragar Eagel & Squire, P.C.
Brandon Walker, Esq.
Melissa Fortunato, Esq.
(212) 355-4648
investigations@bespc.com
www.bespc.com