Specifically, the case is being brought by former Abbott Laboratories employees who claim they were cheated out of health-care and pension benefits when the company spun off its medical products business earlier this year and created a company called Hospira Inc. The federal suit seeks class-action status on behalf of more than 10,000 former Abbott employees who became Hospira employees due to the spin-off.
More specifically, the complaint alleges that the Company "induced" plaintiffs and other employees to join and stay with the company by promising them "superior" employment and retirement benefits. However, as concerns about the costs of those commitments rose, Abbott terminated its health-products division employees.
The complaint said 70 percent of the former Abbott health products group employees were age 40 or older making them the most senior division at Abbott. It states those employees stood to earn substantial benefits under Abbott's plans as they approached their retirement age.
The suit notes that as part of the spin-off, Abbott adopted a no-hire policy that prevents former Abbott health products division workers from returning to Abbott for two years. Those who do return will experience a break in service under Abbott's benefit plans that will reduce the benefits they can earn after they return.
This is all the information available at this time. ClassActionAmerica.com will continue to monitor this case and provide updated information when it becomes available.