New Challenges In Alere Inc (NYSE:ALR) – Abbott Laboratories (NYSE:ABT)’s Expected Merger

Alere Inc (NYSE:ALR) has been facing a number of problems including a delayed merger with Abbott Laboratories (NYSE:ABT), with the newest of these problems being a new class-action lawsuit filed over a new blood coagulation test that was recalled due to concerns about its accuracy.

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According to John Roddy, the lawyer who filed the lawsuit, this lawsuit is similar to one filed in California last month. Both are about the INRatio home blood tests that were sold by Alere to be used by patients who take blood thinners to determine the right portion of the dose needed for treatment.

Roddy pointed out that INRatio was a target of a Class 1 recall – the most serious type back in December 2014. The recall was done because it was determined that the tests were giving inaccurate readings that could lead to dosage levels being too high or too low, either of which could threaten the health of patients. Roddy indicates that it is the recall mostly constitutes letters that were sent to users of INRatio, informing them of the action, but not offering them any compensation for the test.

Two plaintiffs in the lawsuit did not get any notification from Alere, which according to Roddy is somewhat of a mystery. The two found out about the recall and contacted the company but according to the lawsuit, Alere has refused to refund the cost of its INRatio System to them or any purchaser. Roddy notes that the firm has 30 days to respond to the demand in the letter, and if they refuse to refund the purchased test, the suit will move forward. He also noted at some point in the future, the suit could be combined with the similar one in California.

It is not known how many INRatio tests were sold and therefore it is difficult to say how much money Alere could owe if it decides to refund all users.

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