Have a Claim?

Click here for a confidential contact or call:


February 22, 2022

Posted  February 22, 2022

Healthcare company Baxter International Inc. and two of its former executives have settled claims with the SEC related to reporting of its intra-company foreign exchange transactions.  Baxter agreed to pay a penalty of $18 million; the company’s former treasurer and assistant treasurer will pay penalties of $125,000 and $100,000, respectively.  The SEC alleged that in recording foreign currency transactions recognized by its subsidiaries, Baxter used a foreign exchange rate convention that was not in accordance with U.S. generally accepted accounting principles; the company then leveraged this FX convention by engaging in intra-company transactions for the sole purpose of generating FX gains or avoiding FX losses, resulting in material misstatements of its net income.  SEC

Tagged in: Accounting Fraud, Financial and Investment Fraud, Misrepresentations,