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Abbott Labs Cybersecurity Lawsuit Update

This lawsuit, as first reported on here, alleges that numerous fiduciary failures led to unauthorized distributions totaling $245,000 from the plaintiff’s account in the Abbott Laboratories Stock Retirement Plan. The Court ruling dismissed Abbott Laboratories from the lawsuit on the basis that the plaintiff failed to sufficiently prove that Abbott Labs meets the statutory definition of fiduciary and that it acted in its capacity as a fiduciary when it took actions subject to the complaint. Alight, the Plan’s recordkeeper, however, was declared to have acted as a fiduciary by “exercising discretionary control or authority over the plan’s assets.” Additionally, Alight’s alleged security measure failures sufficiently substantiate an unfair business practice claim against Alight under the Illinois Consumer Fraud and Deceptive Practices Act (ICFA), for which monetary recovery can be sought.

www.planadviser.com; October 5, 2020.