Baxter International (BAX) Plunge 2.58% Amid Securities Fraud Lawsuits Over Novum LVP Defects

The share price fell to its lowest level since January 1989 today, with an intraday decline of 2.58%.

Baxter International (BAX) faces mounting legal and reputational challenges amid a series of securities fraud lawsuits tied to its Novum IQ Large Volume Pump (Novum LVP). The lawsuits allege the company misled investors by downplaying systemic design flaws in the device, which caused malfunctions including underinfusion, overinfusion, and complete failure to deliver fluids. These defects, linked to patient injuries and deaths, were allegedly concealed despite repeated internal alerts. The legal actions, spanning a class period from February 2022 to July 2025, accuse Baxter of violating federal securities laws by misrepresenting the device’s safety and commercial viability, artificially inflating the stock price during the period.

The litigation highlights risks of regulatory intervention, including potential removal of existing Novum LVP units from service and halting new sales, which could directly erode revenue. With the lead plaintiff deadline set for December 15, 2025, the lawsuits seek to hold senior executives accountable and recover losses for shareholders. Analysts note that the prolonged legal uncertainty, combined with the stock’s 22.57% drop over six days, underscores eroding investor confidence. The case underscores broader concerns about corporate governance in the healthcare sector, where transparency around product risks is critical to maintaining market trust. As the litigation progresses, the outcome could shape Baxter’s financial resilience and long-term strategic direction.