Abbott Laboratories AWAY Class action lawsuit alleging securities fraud:

The lawsuit challenges the defendants’ testimonies and omissions regarding what the FDA has described as “extremely unsanitary” conditions at Abbott’s infant formula manufacturing facility in Sturgis.

Specifically, the lawsuit alleges that the defendants: (1) touted the strength and safety of Abbott’s infant formula brands while knowing that Sturgis was a flagrant violation of FDA and other health, safety and manufacturing regulations; (2) concealed those violations from investors; and (3) as a result, seriously endangers Abbott’s infant nutrition business and puts the company at risk of serious regulatory consequences, including the recall of its products and the closure of Sturgis.

The truth began to emerge on Feb. 17, 2022, when the FDA announced it began inspections of Sturgis following reports of critically ill babies and, to date, found contamination results from environmental samples for a bacterium linked to infant illness and death is associated. On the same day, Abbott released a comprehensive recall of infant formula made in Sturgis.

In the days that followed, Abbott Sturgis was forced to close due to serious safety issues.

Then, on March 22, 2022, the FDA released Sturgis inspection reports that concluded controls to guard against adulteration and contamination were lacking.

Additionally, a whistleblower complaint was released on April 28, 2022 and sent to the FDA in October 2021, revealing that Abbott’s management had (i) much earlier knowledge of Sturgis’ FDA violations, (ii) testing records at Sturgis falsified and (iii) attempted to mislead the FDA during a previous inspection audit.

Finally, on June 8, 2022, investors learned that Abbott was aware of the whistleblower’s allegations in early 2021.

Each of these events sent Abbott shares down significantly,…