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BDX.US
id: 926

Becton, Dickinson and Company (BDX) $85 Million Investor Settlement

$85,000,000
Cash Settlement
D. New Jersey
Court
2:20-cv-02155
Case number
11/05/2019
Class period Start
02/05/2020
Class period End
06/14/2024
Claim deadline

Becton, 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 Type
US Securities Class Action
Case Status
Claim Submission Closed
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
02/27/2020
Lead Plaintiff Deadline
04/27/2020
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
04/22/2024
Exclusion deadline
04/01/2024
Objection deadline
04/01/2024
Attorney fee
$22,250,000
Class wide damages
$738,600,000
Trades matching type
FIFO

Frequently Asked Questions

Who is eligible for this settlement?

All persons and entities who purchased or otherwise acquired BD common stock or call options, or sold BD put options, from November 5, 2019 to February 5, 2020, inclusive.

Do I have to sell securities to be eligible?

No, if you have purchased securities within the class period, you are eligible to participate.

You can participate in the settlement and retain (or sell) your securities.

How much will my payment be?

The final payout amount depends on your specific trades and the number of investors participating in the settlement.

If 100% of investors file their claims - the average payout will be $2.14 per share. Although typically only 25% of investors file claims, in this case, the average recovery will be $8.56 per share.

How long does the payout process take?

The entire process usually takes 4 to 9 months after the claim deadline. But the exact timing depends on the court and settlement administration.

What is 11thestate?

11thestate is an investor recovery company, we help investors to track and collect securities class action settlements. We will:

  1. Prepare documents for your payout

  2. Audit the claim and make sure you get the maximum possible payout

  3. File a claim with the settlement administration

  4. Correspond with the settlement administration to resolve emerging issues

  5. Deliver payout directly to your brokerage account

There is no upfront cost, but we will deduct 20% of the recovered amount as a commission for our services.