On February 22, 2022, the Commission instituted cease-and-desist proceedings against Baxter International Inc. stating: "From at least 1995 through July 2019, the foreign exchange rate convention ("FX Convention") Baxter used to record foreign currency transactions recognized by subsidiaries in their functional currencies and to uniformly translate the results of subsidiaries with foreign functional currencies into U.S. dollars was not in accordance with U.S. generally accepted accounting principles ("GAAP") . . . Based on this conduct, and as described in further detail below, Baxter violated Sections 17(a)(2) and 17(a)(3) of the Securities Act and Sections 13(a), 13(b)(2)(A), and 13(b)(2)(B) of the Exchange Act and Rules 13a-1, 13a-11 and 13a-13 thereunder."

The SEC stated: "announced settled charges and an $18 million penalty against Baxter International Inc. for engaging in improper intra-company foreign exchange transactions that resulted in the misstatement of the company’s net income. The SEC also announced settled charges against Baxter’s former treasurer and assistant treasurer, Scott Bohaboy and Jeffrey Schaible, respectively, for their misconduct related to these transactions."

The Commission ordered that: "the Division’s request for an extension of time until January 31, 2023 to submit a Proposed Plan of Distribution is granted."

The Commission ordered that: "Miller Kaplan Arase LLP is appointed as the Tax Administrator for the QSF in the above-referenced proceeding."

The Commission ordered that: "Epiq is appointed as the fund administrator . . . and shall obtain a bond in accordance with Rule 1105(c) of the Commission’s Rules,5 in the amount of $18,314,359.00"

The Commission ordered that: "the Division’s request for an extension of time until February 28, 2023 to submit a Proposed Plan of Distribution is granted."

The SEC stated: "Notice is hereby given . . . that the Division of Enforcement has submitted to the Commission a proposed plan of distribution (the “Proposed Plan”) for the distribution of monies paid in the above-captioned matters."

The Commission stated: "The Division of Enforcement submits this Proposed Plan of Distribution (the “Plan”) to the United States Securities and Exchange Commission (the “Commission”) . . . . This Plan provides for the distribution of a Fair Fund (the “Baxter Fair Fund”), comprised of disgorgement, prejudgment interest, and civil money penalties paid by Baxter International Inc. (“Baxter”), Jeffrey Schaible, and Scott Bohaboy (the “Respondents”) in the above-captioned matters."

The Commission ordered that: "for good cause shown, the time for entering an order approving or disapproving the Plan is extended to October 16, 2023."

The Commission ordered that: "the Proposed Plan is approved, and the approved Plan of Distribution shall be posted simultaneously with this order on the Commission’s website at www.sec.gov."

The SEC stated: "The Division of Enforcement submits this Plan of Distribution (the “Plan”) to the United States Securities and Exchange Commission (the “Commission”) . . . . This Plan provides for the distribution of a Fair Fund (the “Baxter Fair Fund”), comprised of disgorgement, prejudgment interest, and civil money penalties paid by Baxter International Inc. (“Baxter”), Jeffrey Schaible, and Scott Bohaboy (the “Respondents”) in the above-captioned matters."

The Commission ordered that: "OFM pay the Fund Administrator's fees and expenses of $72,695.62 from the Fair Fund . . . . Further, OFM is authorized to pay, at the direction of an Assistant Director of the Office of Distributions, any fees and expenses of the Fund Administrator from the Fair Fund . . . , so long as the total amount paid to the Fund Administrator, including the invoice to be paid, does not exceed the total amount of an approved cost proposal submitted by the Fund Administrator."