BDX.US
id: 926
Becton, Dickinson and Company (BDX) $85 Million Investor Settlement
It is still possible to file a late claim. The court will decide whether to accept late claims or not.
D. New Jersey
Court2:20-cv-02155
Case number05 Nov 2019
Class period Start05 Feb 2020
Class period End14 Jun 2024
Claim deadlineBecton, Dickinson, and Company (BDX) has agreed to settle for $85 million to resolve claims that it misled investors about the functionality and safety of its Alaris infusion pumps, leading to a significant stock price drop.
Outline
The lawsuit against Becton, Dickinson alleged that the company misled investors regarding its Alaris infusion pump system. Specifically, Becton failed to disclose software errors in the system that affected alarm prioritization and led to regulatory delays and a voluntary recall. When the issues became public, the company's stock price plummeted by nearly 12%, causing significant losses for investors.
Timeline
- November 2019: Becton reported its fiscal 2019 results and projected strong guidance for 2020.
- February 6, 2020: Becton lowered its 2020 revenue expectations, citing problems with its Alaris infusion pumps. The company announced a voluntary recall and a $59 million charge for the recall.
- February 27, 2020: Investors filed a class-action lawsuit, claiming that Becton had failed to disclose the issues with its Alaris pumps earlier.
- December 2023: Becton agreed to $85 million settlement with investors.
Background
Becton, Dickinson, a leading medical technology company, faced significant challenges related to its Alaris infusion pump system. The pumps experienced software issues that were not immediately disclosed to investors. When the problems came to light, the company had to recall some of the pumps, leading to a sharp decline in revenue and investor confidence. The plaintiffs alleged that Becton had overstated the performance and reliability of the pumps while downplaying the risks.
What Can Investors Expect Now?
Becton, Dickinson has agreed to an $85 million settlement to resolve claims related to the Alaris pump issues.
If you were damaged due to this situation, you can file for a payout and get your share of the settlement. You can check if you are eligible and other details in the FAQ section below.
Case Status
Accepting Late Claims
Alleged Offence
Misleading Statements,
Failure to Disclose,
Omissions
Suspected Party
Directors,
Management
Security Type
Stocks
Trade Direction
Long
Payout per Share
2.14
Filing date
27 February 2020
Lead Plaintiff Deadline
27 April 2020
Plaintiffs
Industriens Pensionsforsikring A/S
Attorneys
Carella, Byrne, Cecchi, Olstein, Brody & Agnello, P.C. (Roseland, NJ), Kessler Topaz Meltzer & Check LLP (Radnor, PA)
Defendants
Vincent Forlenza, Thomas Polen, Christopher Reidy
Judge
Hon. Stanley R. Chesler
Administrator
JND Legal Administration
Court hearing date
22 April 2024
Exclusion deadline
01 April 2024
Objection deadline
01 April 2024
Class wide damages
$738,600,000
Trades matching type
FIFO
+$85,000,000
Cash Settlement Amount