A Grandma Bought PediaSure To Help Her Grandson Grow — Now, Abbott Is In Federal Court

Abbott Laboratories (NYSE:ABT) must defend against a proposed class-action lawsuit alleging it misled consumers into believing that its PediaSure Grow & Gain nutritional drinks were clinically proven to help children grow taller, a federal judge ruled Thursday.

Judge Finds Marketing Could Be Interpreted As Promising Height Growth

Citing a 75-page decision, Reuters report added that U.S. District Judge Paul Engelmayer said consumers could reasonably interpret Abbott's marketing as referring to height growth, even though the company's claim that PediaSure was "clinically proven to help kids grow" did not explicitly specify the type of growth.

Reuters further added that the judge pointed to product packaging featuring a cartoon giraffe alongside ruler-like markings extending to the giraffe's head.

According to the ruling, jurors could conclude that the term "grow" referred to height while "gain" referred to weight gain.

Commercials Cited As Reinforcing Message

Engelmayer also found that Abbott's advertising campaigns could support consumers' interpretation that PediaSure promotes height growth.

Reuters reported that Abbott defended its marketing practices, describing PediaSure's labeling as appropriate and supported by evidence.

Complaint Drives Proposed Class Action

The lawsuit was filed in May 2023. According to the complaint, the child consumed two drinks daily for about a year.

Noriega alleged that despite continued use, her grandson remained short for his age and became overweight, prompting her to stop purchasing the product.

Abbott has maintained that PediaSure is designed for children ages 2 to 13 and is intended to help those at risk of low weight-for-height measurements improve within eight weeks.

Court Preserves Key Expert Testimony

Engelmayer rejected Abbott's effort to exclude testimony from a Columbia Business School professor who concluded that the company's marketing clearly conveyed that "grow" referred to height growth.

The professor also opined that consumers were unlikely to notice or understand disclaimers stating that PediaSure had been studied in children at risk of malnutrition.

ABT Stock Price Activity: Abbott Laboratories shares were up 0.65% at $91.37 at the time of publication on Friday, according to Benzinga Pro data.

Photo via Shutterstock