Abbott Hit with Shareholder Lawsuit

Oct. 12, 2022

The company is charged with hiding its problems with baby-formula production.

A lawsuit alleges that Abbott Laboratories concealed from shareholders the situation it was encountering with baby formula production.

The Gross Law Firm filed the class-action suit in response to Abbott’s troubles with the facility in Sturgis, Mich., where Similac and other brands of baby formula are produced. The plant was closed after two infants died after consuming product from there, although a link was never definitively proven. FDA inspections allegedly revealed unsanitary conditions at the plant.

The lawsuit was filed on behalf of all purchasers of Abbott stock between February 2021 and June 2022. In a statement, Gross charges that “defendants touted the strength of Abbott's infant formula brands and their contribution to the Company's sales and revenue growth, despite knowing that the facility that manufactured those products was in flagrant violations of” FDA regulations. Gross is seeking more shareholders as plaintiffs.

About the Author

Pan Demetrakakes | Senior Editor

Pan has written about the food and beverage industry for more than 25 years. His areas of coverage have included formulations, processing, packaging, marketing and retailing. Pan worked for Food Processing Magazine for six years in the 1990s, where he was operations editor (his current role), touring dozens of food plants of every description. He has also worked for Packaging and Food & Beverage Packaging magazines, the latter as chief editor, during which he won three ASBPE awards. He is a graduate of Stanford University with a BA in communications.