An Alaska union-benefits fund is suing Abbott Laboratories over allegations that Minnesota-based medical device company St. Jude Medical, which is owned by Abbott, failed to warn the public and regulators for years that thousands of its implantable defibrillators contained defective lithium batteries.
The federal lawsuit, filed in northern Illinois late Monday, alleges that St. Jude knew more than 250,000 defibrillators it sold in the United States between 2011 and October 2016 contained batteries that could abruptly short out and cause the lifesaving devices to lose power with little or no warning. Abbott acquired St. Jude three months after the recall, so it has to deal with the litigation.
The plaintiff in the case is the Alaska State Employees Association/AFSCME Local 52 Health Benefits Trust, but the lawsuit is seeking class-action status to represent all self-insured and commercial insurance companies. The lawsuit estimates that those insurers collectively paid hundreds of millions of dollars for St. Jude Medical defibrillators with defective lithium batteries.
The suit also seeks punitive damages.
On Tuesday, an Abbott spokeswoman said the lawsuit has no merit. In the past, St. Jude officials have defended their decision to wait until October 2016 to recall hundreds of thousands of the implantable devices, saying executives and medical advisers worked as quickly as possible to confirm the rare but serious problem.
The federal lawsuit makes 10 claims, including failure to warn about known defects, breach of warranty, negligence, and unjust enrichment. The federal case also includes an allegation that St. Jude officials violated Minnesota's Prevention of Consumer Fraud Act when they "deceptively omitted" long-known facts about the device batteries until last October.
"If defendants had not omitted … or misrepresented the defects in the recalled devices, physicians would not have used the recalled devices," the lawsuit says. "Accordingly, plaintiff and the other nationwide class members would not have incurred costs for the recalled devices and the medical costs of device removal and replacement surgery and other related medical costs."
The lawsuit says St. Jude received 42 reports showing evidence of premature battery depletion related to the lithium problem between 2011 and 2014; and in 2014 the company received a report that the problem had caused a patient death. A journal article documented the problem in December 2014.