Posted on May 24, 2022
Abbott Issued $5 Billion in Stock Buybacks While Tainted Formula Sickened Babies
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Edited >1 y ago
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Using funds to buy back stock instead of repairing/replacing equipment...
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I'm very unhappy that Abbott Labs distributed formula that made babies sick. I would be extremely unhappy if I knew that Abbott Labs' management deliberately sold this formula while knowing it would make babies sick. That would be criminal, and require prosecution.
But I am also a bit unhappy with this article, in which the Defender somehow tries to link Abbott shareholders with management's bad decisions on distributing bad baby formula. Owning shares of stock is not evil. About 70% of the population of the United States owns shares of stock and mutual funds in their retirement plans. Unless Abbott shared its knowledge about this bad formula with its shareholders, then this is not the shareholders' fault. Being a "wealthy shareholder" is not a crime.
But I am also a bit unhappy with this article, in which the Defender somehow tries to link Abbott shareholders with management's bad decisions on distributing bad baby formula. Owning shares of stock is not evil. About 70% of the population of the United States owns shares of stock and mutual funds in their retirement plans. Unless Abbott shared its knowledge about this bad formula with its shareholders, then this is not the shareholders' fault. Being a "wealthy shareholder" is not a crime.
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CH (MAJ) Eric Dye
IF THE ARTICLE IS ACCURATE AND THE DEFECTIVE PRODUTION EQUIP WAS KNOWN; then the responsible management personnel that failed to correct the problem simply to continue to pay higher dividends to the shareholders and themselves; IMHO should be charged, prosecuted and if proven guilty of knowing the faulty conditions existed; go the jail and have their assets garnered. Don't know if that is legal but some kind of corporate liability has to follow. Shareholders may lose in the near and long term; when the product liability information hits the wider public and people stop buying their product and as individual families where a child died start suing the company for negligent corporate safety protocols. They would never choose me to sit on a jury for that one.
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MAJ Hugh Blanchard
I don't know the law and the possible penalties for the crime(s) that may have been committed. I rather doubt that the legal penalties would include taking everything they own away from those found guilty. I know how you feel, but the law, aside from murder or espionage, isn't "all or nothing".
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Somebody needs to go to jail; it may be the head of the corporation for negligent leadership. I have seen them fire commanders in the military when they screw up and slack off in their leadership and oversight responsibilities. It was not always perfect but a good butt-kicking does have an effect on agencies and leaders. What has happened to professional oversight and quality standards enforced by our government agencies? This certainly is not only a recent problem; therefore, not a present leadership issue exclusively. If the standards were not enforced in the previous years there are some 401K and profit sharing accounts that need to be penalized. Maybe I'm just reactive but isn't that why we have all these expensive Government agencies with oversight responsibilities?
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