Baxter International Beats Investor Suit on Accounting, for Now

Baxter International Inc. is free of accusations it misled investors about its accounting for foreign transactions, but the would-be class still has a chance to amend the complaint, according to a federal Illinois judge’s Tuesday ruling.

The healthcare-product company’s investors “failed to allege facts that give rise to a strong inference” that Baxter and its leadership acted with the requisite intent for liability, the U.S. District Court for the Northern District of Illinois said. It dismissed the case without prejudice.

Investors accused Baxter, which is based in Deerfield, Ill., but garners significant revenues from outside the U.S., of making ...