{"id":2171,"date":"2013-09-24T10:00:57","date_gmt":"2013-09-24T15:00:57","guid":{"rendered":"http:\/\/injury.robertkreisman.com\/?p=2171"},"modified":"2013-09-22T07:48:05","modified_gmt":"2013-09-22T12:48:05","slug":"shareholders-right-sue-breach-fiduciary-duty-baxter-international-directors-officers-allowed","status":"publish","type":"post","link":"https:\/\/www.robertkreisman.com\/injury-lawyer\/shareholders-right-sue-breach-fiduciary-duty-baxter-international-directors-officers-allowed\/","title":{"rendered":"Shareholder\u2019s Right to Sue for Breach of Fiduciary Duty by Baxter International Directors and Officers Allowed"},"content":{"rendered":"<p><!--[if gte mso 9]&gt;--><\/p>\n<p class=\"MsoNormal\">This shareholder derivative lawsuit arose out of a long and unsuccessful effort by <a href=\"http:\/\/www.baxter.com\/\">Baxter International Inc.<\/a> to fix various problems with a medical device called <a href=\"http:\/\/en.wikipedia.org\/wiki\/Infusion_pump\">Colleague Infusion Pump<\/a>.<span>\u00a0<\/span>The plaintiff in the case, <a href=\"http:\/\/www.co.westmoreland.pa.us\/DocumentCenter\/View\/237\">Westmoreland County Employee Retirement System <\/a>(Westmoreland) alleged that Baxter\u2019s directors and officers breached their fiduciary duties by \u201cconsciously disregard(ing) their responsibility to bring Baxter into compliance with the 2006 Consent Decree and related health and safety laws.\u201d<span>\u00a0<\/span><\/p>\n<p class=\"MsoNormal\">The breach was alleged to have caused Baxter to lose more than $550 million after the <a href=\"http:\/\/www.fda.gov\/\">Food and Drug Administration <\/a>(FDA) mandated a recall of the Colleague Infusion Pumps in 2010.<span>\u00a0<\/span>Westmoreland was a shareholder that sustained a significant stock value loss; it claimed the loss was caused by Baxter\u2019s board\u2019s and officers\u2019 breach of fiduciary duty.<\/p>\n<p class=\"MsoNormal\">In the mid-1990s, Baxter was manufacturing and selling a product called the Colleague Infusion Pump (Pump), an electronic medical device used to deliver intravenous fluids to patients.<span>\u00a0<\/span>The FDA closely regulates the medical device industry and required that companies comply with \u201ccurrent good manufacturing practices\u201d and \u201cquality system regulations\u201d (see 21 C.F.R. Part 820), when manufacturing such medical devices.<span>\u00a0<\/span>Between 1999 and 2005, the pumps were suffering from a range of defects, some relating to the manufacturing process and others to flaws in the machinery.<span>\u00a0<\/span>The FDA discovered some of these problems during its inspections on Baxter\u2019s facilities.<span>\u00a0<\/span>The FDA sent a series of warning letters to Baxter in which it detailed Baxter\u2019s failure to bring its manufacturing process into compliance with quality-controlled standards.\u00a0In October 2005, the FDA took the drastic step of filing a complaint in federal court seeking forfeiture of all of Baxter-owned Colleague Infusion Pumps.<span>\u00a0 <\/span><\/p>\n<p class=\"MsoNormal\"> <a href=\"https:\/\/www.robertkreisman.com\/injury-lawyer\/shareholders-right-sue-breach-fiduciary-duty-baxter-international-directors-officers-allowed\/#more-2171\" class=\"more-link\">Continue reading<\/a><\/p>\n","protected":false},"excerpt":{"rendered":"<p>This shareholder derivative lawsuit arose out of a long and unsuccessful effort by Baxter International Inc. to fix various problems with a medical device called Colleague Infusion Pump.\u00a0The plaintiff in the case, Westmoreland County Employee Retirement System (Westmoreland) alleged that Baxter\u2019s directors and officers breached their fiduciary duties by \u201cconsciously disregard(ing) their responsibility to bring [&hellip;]<\/p>\n","protected":false},"author":795,"featured_media":0,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"jetpack_post_was_ever_published":false,"footnotes":"","jetpack_publicize_message":"","jetpack_publicize_feature_enabled":true,"jetpack_social_post_already_shared":false,"jetpack_social_options":{"image_generator_settings":{"template":"highway","default_image_id":0,"enabled":false},"version":2}},"categories":[41,81,83,82],"tags":[],"class_list":["post-2171","post","type-post","status-publish","format-standard","hentry","category-breach-of-contract","category-breach-of-fiduciary-duty","category-corporate-law","category-shareholders-derivative-lawsuits"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v27.4 - https:\/\/yoast.com\/product\/yoast-seo-wordpress\/ -->\n<title>Shareholder\u2019s Right to Sue for Breach of Fiduciary Duty by Baxter International Directors and Officers Allowed &#8212; Chicago Injury Lawyer Blog<\/title>\n<meta name=\"description\" content=\"This shareholder derivative lawsuit arose out of a long and unsuccessful effort by Baxter International Inc. to fix various problems with a medical device\" \/>\n<meta name=\"robots\" content=\"index, follow, max-snippet:-1, max-image-preview:large, max-video-preview:-1\" \/>\n<link rel=\"canonical\" href=\"https:\/\/www.robertkreisman.com\/injury-lawyer\/shareholders-right-sue-breach-fiduciary-duty-baxter-international-directors-officers-allowed\/\" \/>\n<meta name=\"twitter:card\" content=\"summary_large_image\" \/>\n<meta name=\"twitter:title\" content=\"Shareholder\u2019s Right to Sue for Breach of Fiduciary Duty by Baxter International Directors and Officers Allowed &#8212; Chicago Injury Lawyer Blog\" \/>\n<meta name=\"twitter:description\" content=\"This shareholder derivative lawsuit arose out of a long and unsuccessful effort by Baxter International Inc. to fix various problems with a medical device\" \/>\n<meta name=\"twitter:label1\" content=\"Written by\" \/>\n\t<meta name=\"twitter:data1\" content=\"Robert Kreisman\" \/>\n\t<meta name=\"twitter:label2\" content=\"Est. reading time\" \/>\n\t<meta name=\"twitter:data2\" content=\"6 minutes\" \/>\n<!-- \/ Yoast SEO plugin. -->","yoast_head_json":{"title":"Shareholder\u2019s Right to Sue for Breach of Fiduciary Duty by Baxter International Directors and Officers Allowed &#8212; 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