US judge allows testimony that Abbott and Mead Johnson preterm baby formula caused deadly disease
1. Expert testimony permitted regarding formula's links to fatal illness. 2. Abbott facing hundreds of lawsuits relating to product safety.
FAQ
Why Very Bearish?
The allowance of expert testimony in lawsuits poses significant reputational and financial risks. Historical cases, such as those involving major pharmaceutical recalls, show how litigation can severely impact stock prices.
How important is it?
Legal issues concerning product safety can lead to lasting financial implications, including settlements and damage claims. The scale of lawsuits (hundreds) suggests considerable potential liability, which could heavily influence investor perceptions.
Why Short Term?
With lawsuits and expert testimonies on the horizon, immediate market reactions are likely. Precedents indicate rapid stock price adjustments following negative legal engagements.