BERWYN, Pa., September 16, 2022 /PRNewswire/ — RM LAW, PC announces that a class action lawsuit has been filed on behalf of all persons or entities who purchased Abbott Laboratories (“Abbott” or the “Company”) (NYSE: ABT) securities during the period from February 19, 2021 through June 8, 2022inclusive (the “Class Period”).
Abbott the shareholders may, at the latest October 31, 2022, ask the Court to be named as the lead plaintiff of the Class. If you have purchased shares of Abbott and would like to know more about these claims or if you would like to discuss these matters and have questions about this announcement or your rights, contact Richard A. Manisks, Esquire toll free at (844) 291-9299 or to register online, click here.
The lawsuit alleges that the defendants put profitability before the safety of the children. During the Class Period, Abbott Laboratories engaged in a scheme to maximize revenue and inflate its stock price while ignoring and then covering up deficiencies in security protocols that were ultimately linked to serious childhood illnesses and even death.
On February 17, 2022The United States Food and Drug Administration (“FDA”) has announced that it is investigating four consumer complaints of childhood illnesses linked to powdered infant formula produced by Abbott Laboratories in Sturgis. The FDA said it initiated an on-site inspection at the facility and to date has found multiple positive environmental sample contamination results for a bacterium, Cronobacter sakazakii (“Cronobacter”), linked to childhood illnesses and death. On the same day, Abbott Laboratories issued a recall of certain infant formulas, including popular brands Similac, Alimentum and EleCare, all made in Sturgis. On this news, the price of Abbott Laboratories common stock fell more than 3%.
Then, on March 22, 2022the FDA has published the reports of its three inspections of the Sturgis installation carried out in September 2019, September 2021and, more recently, between January 31, 2022 and March 18, 2022. The FDA said these reports “do not constitute final determinations by the FDA” on specific violations, but noted that during its last inspection, (a) Abbott has not established process controls “designed to ensure that infant formula is not adulterated due to the presence of microorganisms in the formula or in the processing environment” and (b) Abbott failed to “ensure that all surfaces in contact with infant formula were maintained to protect infant formula from contamination from any source”. At this news, Abbott Laboratories’ stock price fell another 4%.
On April 28, 2022the FDA released a redacted copy of a whistleblower complaint sent to the FDA in October 2021revealing that the issues revealed in February and March 2022 were actually known to Abbott Laboratories management much earlier. The whistleblower’s complaint identified numerous serious examples of misconduct by Abbott Laboratories management at Sturgis, including falsifying testing records, marketing untested infant formula, efforts to mislead the FDA during its 2019 inspection audit, pursuing known deficient testing procedures, and the inability to trace products to properly implement recalls of formula affected pallets. At this news, Abbott Laboratories stock price fell almost 4%.
Finally, on June 8, 2022investors learned that Abbott Laboratories was aware of the whistleblower’s formal allegations in early 2021, when it was reported that the FDA whistleblower had filed a complaint in February 2021 with the US Department of Labor’s Occupational Safety & Health Administration (“OSHA”), and that OSHA forwarded this complaint to Abbott Laboratories and the FDA during the same month. On this news, Abbott Laboratories’ share price fell another 3.5%, further hurting investors.
If you are a member of the group, you can, at the latest October 31, 2022, ask the Court to name you as the lead plaintiff in the class. A lead plaintiff is a representative party who acts on behalf of the other class members to direct the litigation. In order to be named lead plaintiff, the Court must determine that the class member’s claim is typical of the claims of other class members, and that the class member will adequately represent the class. In certain circumstances, one or more class members may act together as a “lead plaintiff”. Your ability to participate in any collection, however, is not affected by the decision whether or not to serve as the lead plaintiff. You may retain RM LAW, PC or another attorney of your choice to act as counsel in this action.
For more information on this, please contact RM LAW, PC (Richard A. Manisks, Esquire) toll free at (844) 291-9299 or by email at [email protected] or click here. For more information on class actions generally or to learn more about RM LAW, PC, please visit our website by clicking here.
RM LAW, PC is a national shareholder litigation firm. RM LAW, PC is dedicated to protecting the interests of individual and institutional investors in shareholder actions in state and federal courts nationwide.
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