The New York Stock Exchange notified Baxter (NYSE:BAX) on Friday that the company has until May 20, 2020 to file its third-quarter financial report and any subsequent delayed filings to regain compliance with exchange’s listing standards.
The Deerfield, Ill.–based healthcare products company announced Nov. 15 that it was conducting an internal probe into its foreign exchange trading practices. Baxter previously said that the transactions under investigation “resulted in certain misstatements” in the reporting of non-operating income from foreign exchange gains.
The problem involves transactions using a foreign exchange rate convention historically applied by the company that was not in accordance with generally accepted accounting principles. The transactions ” enabled intra-company transactions to be undertaken after the related exchange rates were already known.”
Friday’s notice from the NYSE has no immediate effect on the listing of Baxter’s stock on the exchange or on any of the its outstanding bonds, according to the company.
Baxter said previously that it had independent, experienced external advisors assisting the investigation, overseen by the audit committee of the company’s board of directors. The company said Friday that it intends to comply with the May 20, 2020 deadline.
Shares in BAX fell by 0.56% to $81.70 on Friday morning, but recovered to $82.02 at the close.