8-KOther Events

ABBOTT LABORATORIES 8-K Report, Corporate Update (Nov 20, 2008)

Filed November 20, 2008For Securities:ABT

Summary

Abbott Laboratories (ABT) announced on November 20, 2008, that it has reached settlements in class-action lawsuits and individual claims related to the sale of its fenofibrate formulations. The company will pay approximately $184 million to resolve these legal matters. This significant settlement is expected to be treated as a specified item impacting the fourth quarter of 2008 financial results. While the settlements address both direct purchaser class action claims and individual plaintiff claims, the amounts related to other previously disclosed fenofibrate litigation were deemed not material. Investors should note this expense as it will affect the company's near-term profitability and cash flow. The company has also included a cautionary statement regarding forward-looking statements, as is standard practice.

Key Highlights

  • 1Abbott Laboratories has settled litigation concerning fenofibrate formulations.
  • 2The total settlement amount for the primary litigation is approximately $184 million.
  • 3This settlement resolves direct purchaser class action claims and claims by individual plaintiffs.
  • 4Additional settlements have been reached for other fenofibrate litigation, with non-material amounts.
  • 5The $184 million settlement is classified as a specified item for the fourth quarter of 2008.
  • 6The filing was made on November 20, 2008, related to events on November 19, 2008.

Frequently Asked Questions

The primary event reported is Abbott Laboratories reaching settlements in litigation related to the sale of fenofibrate formulations.

Abbott Laboratories will pay approximately $184 million to resolve the main group of claims, with other settlements being non-material.

Abbott intends to treat the $184 million settlement payment as a specified item impacting the fourth quarter of 2008.

No, the $184 million settlement addresses specific class action and individual claims. Settlements for other previously disclosed fenofibrate litigation have also been reached, but their amounts are not considered material.