In a significant development, the United States District Court for the Northern District of Illinois Eastern Division issued an order consolidating multiple Abbott shareholder derivative cases, with the Teamsters Local 710 Pension Fund and Southeastern Pennsylvania Transportation Authority (SEPTA) appointed as co-lead plaintiffs. Kehoe Law Firm, representing institutional investors, welcomes this decision, emphasizing the importance of streamlined proceedings to address allegations related to Abbott Laboratories.
The order, issued by Judge Manish S. Shah on September 18, 2023, grants the motion to consolidate cases and appoint co-lead plaintiffs, filed by the Teamsters Local 710 Pension Fund and SEPTA. The court also denied competing motions from other plaintiffs, including New York State Comptroller Thomas P. DiNapoli, as Trustee of the New York State Common Retirement Fund.
The action concerns whether the Individual Defendants concealed lapses in safety protocols at Abbott’s Sturgis, Michigan facility, and thereby breached their fiduciary duties and violated federal securities laws. The alleged lapses resulted in environmental contamination with Cronobacter sakazakii bacteria, a critical issue affecting the manufacturing of Abbott’s infant formula and leading to a notional shortage.
John A. Kehoe, Partner at Kehoe Law Firm, expressed his satisfaction with the court’s decision: “We are pleased with the court’s order to consolidate the Abbott shareholder derivative cases, bringing efficiency and focus to the legal proceedings. The appointment of SEPTA the Teamsters Local 710 Pension Fund as co-lead plaintiffs underscores the court’s confidence in their ability to represent shareholder interests effectively. At Kehoe Law Firm, we remain committed to representing investors in cases that contribute to corporate governance accountability and protect shareholder value.”
The court’s decision acknowledges the competence of all parties involved, highlighting the dedication of SEPTA and Teamsters Local 710, along with their chosen counsel, in navigating the complexities of the case. The consolidated action is captioned, In Re Abbott Laboratories Infant Formula Shareholder Derivative Litigation, 22-CV-5513 (N.D. IL).
For more information about Kehoe Law Firm and its involvement in this matter, please contact John A. Kehoe at [email protected] or call (215) 792-6676.