United States Seventh Circuit

In a series of investor lawsuits after restatement of a public company's financial results following discovery of fraud by several of the company's managers in Brazil, district court judgment for defendant is affirmed where: 1) plaintiffs did not proffer concrete evidence that anyone at Baxter's headquarters in the US knew of the fraud in Brazil; 2) plaintiffs did not contend that the knowledge of the senior managers in Brazil should be imputed either to plaintiff or any of its managers in the US; and 3) defendants did not have a duty to disclose information about the fraud until their required quarterly report.

Appellate Information

• Argued 12/08/2006
• Decided 07/27/2007
• Published 07/27/2007

Judges

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

Court

• United States Seventh Circuit

Counsel

• For Appellant:
  
• Christopher B. Sanchez, Miller, Faucher & Cafferty, Chicago, IL, for Plaintiffs-Appellants., Russell D. Paul (argued), Berger & Montague, Philadelphia, PA, Patrick V. Dahlstrom, Pomerantz, Haudek, Block, Grossman & Gross, Chicago, IL, for Appellant.


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