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HIGGINBOTHAM v. BAXTER INTERN., INC.

No. 06-1312.

495 F.3d 753 (2007)

Dennis HIGGINBOTHAM, et al., Plaintiffs-Appellants, v. BAXTER INTERNATIONAL INC., et al., Defendants-Appellees.

United States Court of Appeals, Seventh Circuit.

Decided July 27, 2007.

Attorney(s) appearing for the Case

Christopher B. Sanchez, Miller, Faucher & Cafferty, Chicago, IL, for Plaintiffs-Appellants.

Matthew R. Kipp (argued), Skadden, Arps, Slate, Meagher & Flom, Chicago, IL, for Defendants-Appellees.

Russell D. Paul (argued), Berger & Montague, Philadelphia, PA, Patrick V. Dahlstrom, Pomerantz, Haudek, Block, Grossman & Gross, Chicago, IL, for Appellant.

Before EASTERBROOK, Chief Judge, and POSNER and RIPPLE, Circuit Judges.

EASTERBROOK, Chief Judge.

On July 22, 2004, Baxter International announced that it would restate the preceding three years' earnings in order to correct errors created by fraud at its subsidiary in Brazil. Managers there had conveyed the illusion of growth by reporting sales as having been made earlier than their actual dates; when it was no longer possible to accelerate revenue this way, the managers reported fictitious sales. Brazilian managers also failed to create...

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