Abbott Laboratories Common Stock (NYSE: ABT)
The Complaint alleges that, throughout the Class Period, Defendants made numerous materially false and misleading statements and omissions concerning what the U.S. Food and Drug Administration called “egregiously unsanitary” conditions at the Company’s Sturgis facility. Specifically, the Complaint alleges Defendants repeatedly touted to investors the safety and salability of Abbott’s infant formula brands and their contribution to the Company’s sales and revenue growth; however, in truth, Abbott’s Sturgis facility was in violation of multiple federal and state health and safety regulations. Those violations, the Complaint alleges, put Abbott’s infant formula business in dire jeopardy and left the Company exposed to a risk of severe regulatory action, including the recall of its products and closure of the Sturgis facility. By no later than February 2021 and continuing throughout the Class Period, Abbott and Defendants received direct warnings, communications, FDA inspection reports, and consumer complaints identifying in detail the safety and regulatory violations that were rampant at the Sturgis facility. The Complaint alleges that as a result of Defendants’ misrepresentations and omissions, Abbott common stock traded at artificially inflated prices during the Class Period.