Baxter International Inc (BAX) has disclosed a new risk, in the Share Price & Shareholder Rights category.
Baxter International Inc.’s Bylaws could impose a significant limitation on where stockholders may resolve legal disputes with the company. By designating Delaware courts as the exclusive forum, stockholders might face higher costs and logistical challenges, potentially deterring litigation. Although this could shield the company from diverse legal actions, the enforceability of such forum provisions remains subject to judicial scrutiny, which, if unfavorable, could lead to additional expenses for Baxter in defending actions in other jurisdictions. This choice of forum clause has the potential to affect both the company’s litigation risk profile and its relationship with its investors.
Overall, Wall Street has a Hold consensus rating on BAX stock based on 2 Buys and 7 Holds.
To learn more about Baxter International Inc’s risk factors, click here.
