Abbott Faces Lawsuit As Grandmother Questions PediaSure's Height Growth Claims
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Abbott Laboratories (NYSE:ABT) faces a lawsuit from a New York City grandmother, Joanne Noriega, over the efficacy of its PediaSure Grow & Gain nutrition drinks. The lawsuit alleges that Abbott falsely claimed the drinks were "clinically proven" to boost children's height, which led Noriega to purchase them for her grandson with no observed height increase but excessive weight gain instead. U.S. District Judge Paul Engelmayer denied Abbott's attempt to dismiss the lawsuit, citing evidence-backed reasons to question Abbott's marketing claims. Abbott insists the case is without merit, stating PediaSure is a scientifically designed nutrition solution.
February 03, 2024 | 8:03 pm
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Abbott Laboratories is embroiled in a lawsuit over its PediaSure Grow & Gain drinks, accused of misleading marketing claims about height growth. The case has garnered attention as a judge denied Abbott's dismissal attempt, highlighting potential concerns over the product's efficacy.
The lawsuit against Abbott Laboratories regarding PediaSure's marketing claims could negatively impact ABT's stock in the short term due to potential reputational damage and the financial implications of legal proceedings. The judge's decision to deny Abbott's attempt to dismiss the lawsuit adds credibility to the allegations, which may lead to increased scrutiny of Abbott's marketing practices and potentially affect consumer trust and sales. The legal battle and its coverage could deter investors, leading to a negative impact on the stock price.
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