Trial In Employee Suit Against Abbott, Hospira To Start Wed
21 Avril 2009 - 10:52PM
Dow Jones News
A trial in a class-action suit brought by former Abbott
Laboratories (ABT) employees alleging they lost benefits when the
company spun off Hospira Inc. (HSP) in 2004 is finally set to start
Wednesday, and could lead to a ruling this autumn.
When Abbott shed Hospira, which makes generic injectable drugs
and medication-delivery tools, about 10,000 workers were
transferred in the move. The plaintiffs in the case allege that
Abbott communicated false information about the pension and retiree
health benefits workers would receive if they accepted Hospira
employment.
The companies have denied they acted improperly in the
matter.
The case, set for trial in the U.S. District Court for the
Northern District of Illinois, involves three former Abbott workers
who are still with Hospira and are representing all affected
workers, said Steven Sprenger, counsel for the plaintiffs at the
law firm Sprenger + Lang.
The suit was originally filed in late 2004 and has had a long
path to court. U.S. District Judge Robert Gettleman last July
denied motions for summary judgment brought by Abbott and Hospira
and indicated the matter should be sorted out in a trial.
It is planned to last six days but in two chunks - one starting
Wednesday and the other in late July. This is due to Abbott's
planned annual meeting Friday, which will prevent plaintiffs'
attorneys from calling Abbott Chief Executive Miles White to
testify this week. Sprenger said he aims to call White in July and
to call Hospira Chief Executive Christopher Begley this week.
A judge's decision in the bench trial could come in September or
October, Sprenger estimated. Plaintiffs are "seeking to be put back
into the same position that they would have been in but for the
spinoff and the loss of their benefits," he said.
Hospira didn't have any comment on the matter Tuesday, but has
said previously that it acted in compliance with the law at all
times.
Abbott spokesman Scott Stoffel noted that the company created
Hospira to allow both companies to maximize opportunities in their
different markets - Abbott is a big maker of brand-name drugs,
medical devices and diagnostic equipment. "Potential employee
benefit savings never factored into this decision," Stoffel
said.
He also said that Abbott clearly communicated that Hospira would
have responsibility for all employee benefit plans starting Jan. 1,
2005.
-By Jon Kamp, Dow Jones Newswires; 617-654-6728;
jon.kamp@dowjones.com