Abbott Faces $1 Billion Claim in Trial Over Stent Marketing

Abbott Laboratories is accused in a trial that started March 22 of marketing unapproved stents for unsuspecting patients and cheating Medicare, as a whistle-blower seeks more than $1 billion, a risk the company hasn’t fully disclosed to shareholders (United States ex rel. Colquitt v. Abbott Labs.trial).

The company faces allegations it increased sales by marketing devices for uses that weren’t approved by the Food and Drug Administration. Kevin Colquitt, a former salesman for Abbott and Guidant LLC turned whistle-blower, claims it pushed bile duct stents, intended for short-term purposes, for more complex vascular use.

The drugmaker didn’t conduct ...