Quimbee logo
DMCA.com Protection Status
From our private database of 18,800+ case briefs...

Asher v. Baxter International Inc.

United States Court of Appeals for the Seventh Circuit
377 F.3d 727 ( 2004)

Asher v. Baxter International Inc.


Baxter International Inc. (Baxter) (defendant), a manufacturer of medical products, released second-quarter financial results for 2002 on July 18, 2002, that were lower than expected, causing shares to drop from $43 to $32. On November 5, 2001, Baxter had made a projection that business revenue would grow in the low teens. Between the projection on November 5 and the actual financial results on July 18, Baxter had acquired Fusion Medical Technologies (Fusion) in a stock-for-stock transaction. Brian Asher (plaintiff) brought suit to represent all of the investors who had bought stock or exchanged shares of Fusion during that time. The complaint contended that Baxter’s November 5 projections were materially false because: (1) Baxter’s renal division had not met its internal budgets in years, (2) Baxter had closed multiple plants that had been the principal source of its low-cost products, and (3) Baxter’s bio-science division had experienced a sterility failure that resulted in over $10,000,000 in losses. Baxter had not changed its forecasts and cautions after the sterility failure and the closing of multiple plants. The district court dismissed the complaint on the grounds that Baxter’s forecasts were within the safe-harbor provision of the Private Securities Litigation Reform Act of 1995 (the Act), 15 U.S.C. §§ 77z-2(c), 78u-5(c). Asher appealed.

Rule of Law


Holding and Reasoning (Easterbrook, J.)

What to do next…

  1. Unlock this case brief with a free (no-commitment) trial membership of Quimbee.

    You’ll be in good company: Quimbee is one of the most widely used and trusted sites for law students, serving more than 499,000 law students since 2011. Some law schools—such as Yale, Vanderbilt, Berkeley, and the University of Illinois—even subscribe directly to Quimbee for all their law students. Read our student testimonials.

  2. Learn more about Quimbee’s unique (and proven) approach to achieving great grades at law school.

    Quimbee is a company hell-bent on one thing: helping you get an “A” in every course you take in law school, so you can graduate at the top of your class and get a high-paying law job. We’re not just a study aid for law students; we’re the study aid for law students. Read more about Quimbee.

Here's why 499,000 law students have relied on our case briefs:

  • Written by law professors and practitioners, not other law students. 18,800 briefs, keyed to 985 casebooks. Top-notch customer support.
  • The right amount of information, includes the facts, issues, rule of law, holding and reasoning, and any concurrences and dissents.
  • Access in your classes, works on your mobile and tablet. Massive library of related video lessons and high quality multiple-choice questions.
  • Easy to use, uniform format for every case brief. Written in plain English, not in legalese. Our briefs summarize and simplify; they don’t just repeat the court’s language.

Questions & Answers

Have a question about this case?

Sign up for a free 7-day trial and ask it

Sign up for a FREE 7-day trial