Asher v. Baxter International Inc.
United States Court of Appeals for the Seventh Circuit
377 F.3d 727 (7th Cir. 2004)
Baxter (defendant) projected low-teens revenue growth in November 2001, but before its disappointing July 2002 results, it had experienced budget misses, plant closures affecting its low-cost products, and a $10 million sterility failure, none of which prompted any update to its forecasts or accompanying cautionary language; the district court dismissed a securities suit based on the PSLRA's safe harbor for forward-looking statements.
Whether a company must include all important variables in cautionary language accompanying a forward-looking statement, even as risks change, in order to receive safe-harbor protection under the Private Securities Litigation Reform Act of 1995.