Abbott labs wins ruling ending Hospira spinoff suit

Abbott Laboratories and its spinoff Hospira Inc. didn't mislead workers about their retirement benefit levels as an inducement to for them to leave the established company for the startup, a U.S. judge ruled.

The employees failed to meet their burden of proof in an eight-day nonjury trial last year, U.S. District Judge Robert Gettleman in Chicago said in a 97-page ruling posted today on the court's Web site.

Workers Myla Nauman, Jane Roller and Michael Loughery, who represented a group of more than 8,000 people, sued the Libertyville Township-based drug company and intravenous products-maker Hospira after its 2004 spinoff, claiming violations of their rights under the federal employee retirement income security act, known as ERISA.

"The court's ruling vindicates Abbott's position that the creation of Hospira was a strategic decision designed to position both for long-term success," said Scott Stoffel, an Abbott spokesman.

The workers claimed they were told benefit levels wouldn't change if they joined Hospira. The spinoff eliminated a retiree medical benefit program immediately and its pension plan as of Jan. 1, 2005, according to court papers.

"Potential employee benefit savings never factored into the decision to create Hospira," Stoffel said. Plaintiffs' lawyer Steven M. Sprenger said by phone that he was still reviewing the court's decision and would decide what, if any, course of action to take in the coming weeks.

'We Are Disappointed'"Our clients, and we, are disappointed with the ruling," the attorney said. He is a partner in Washington's Sprenger Lang LLC.Hospira was accused of collaborating with Abbott on reciprocal no-hire agreements under which it pledged not to employ workers who received retirement benefits from Abbott.Abbott agreed, for two years, not to rehire workers who went to Lake Forest, Illinois-based Hospira, according to the complaint."We are pleased with the court's ruling," said Stacey Eisen, a Hospira spokeswoman. "It validates our long-held position that Hospira acted in compliance with the law at all times."The case is Nauman v. Abbott Laboratories, 04cv7199, U.S. District Court, Northern District of Illinois (Chicago).