Abbott Wins Dismissal of Shareholder Lawsuit Over 2022 Formula Recall
ABT sits 26% above its 52-week low of $81.97.
Summary
A federal judge dismissed a shareholder lawsuit accusing Abbott of fraud related to the 2022 infant formula recall, ruling the 217-page complaint failed to state a claim. This removes a legal overhang that has persisted since the recall and follows the DOJ dropping its criminal probe in June. The dismissal strengthens Abbott's litigation position as it still faces other formula-related lawsuits. The company recently raised guidance after a strong Q2, and this legal win may further ease investor concerns.
At the time of this announcement, ABT was trading at $103.10 on NYSE in the Life Sciences sector, with a market capitalization of approximately $179.6B. The 52-week trading range was $81.97 to $137.49. This news item was assessed with positive market sentiment and an importance score of 7 out of 10. Source: Reuters.