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Class Action Against Abbott's Glucerna Products Proceeds in Federal Court

Published 07/06/2024, 19:17
Updated 07/06/2024, 20:41
© Reuters.  Class Action Against Abbott\'s Glucerna Products Proceeds in Federal Court
ABT
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Benzinga - by Vandana Singh, Benzinga Editor.

A California federal judge has reportedly allowed litigation to proceed against Abbott Laboratories (NYSE:ABT) regarding its Glucerna shakes and nutritional powders.

The lawsuit claims these products, marketed as suitable for people with diabetes, contain harmful ingredients.

U.S. District Judge P. Casey Pitts in San Jose largely denied Abbott’s motion to dismiss the proposed class action, stating that consumers had provided sufficient evidence to support their claims that Glucerna, which is labeled as “scientifically designed for people with diabetes,” contains sucralose and other additives that some studies indicate could have adverse health effects.

Related: Abbott Faces Lawsuit As Grandmother Questions PediaSure’s Height Growth Claims.

Judge Pitts did grant Abbott’s motion to dismiss the consumers’ request for an injunction that would require Abbott to amend the labeling on Glucerna products.

He reasoned that consumers concerned about these additives could check the ingredients list to see if the products contain sucralose.

Steven Prescott, a California resident, initiated the lawsuit in August. Prescott alleges that the Glucerna product labels misled consumers by claiming they could help regulate blood sugar in diabetics and individuals with similar conditions.

He contends that the products contain sucralose, a sugar substitute approved by the FDA for use in food, which can deregulate blood sugar, kill insulin-releasing cells in the pancreas, and cause cells to become resistant to insulin.

Reuters noted that Abbott has maintained that the Glucerna product labels are not misleading, asserting that the products are intended as snacks or meal replacements that help regulate blood sugar compared to high glycemic carbohydrates.

The company also criticized the studies Prescott cited, arguing they do not substantiate a link between sucralose and the alleged health problems.

In its dismissal motion, Abbott pointed to the side label on Glucerna shakes, which states the product is designed to “help minimize blood sugar spikes” compared to high glycemic carbohydrates.

However, Judge Pitts noted that at this stage, it is not clear that consumers would understand the side label to limit the front-label claims as much as Abbott suggests.

Price Action: ABT shares are up 2.75% at $107.14 at the last check on Friday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

Photo via Shutterstock

© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.

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