Abbott Can't Kick Investor Suit Over Depakote Marketing

Law360, San Francisco (June 5, 2013, 6:48 PM EDT) -- A federal judge on Wednesday refused to toss a shareholder derivative suit against Abbott Laboratories, finding the plaintiffs had adequately argued Abbott's directors knew the company was in trouble for marketing off-label uses for the anti-seizure drug Depakote but did nothing, costing the company $1.6 billion.

U.S. District Judge Virginia M. Kendall rejected Abbott's argument that the plaintiffs had failed to show Abbott continued the unlawful marketing campaign through 2008 or that its board of directors knew something was amiss. The fact that the U.S. Department...
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