Abbott, Ousted Chairman Reach Agreement
CHICAGO (AP) _ Abbott Laboratories and its ousted Chairman Robert A. Schoellhorn have reached an agreement on Schoellhorn’s lawsuit against the company, although officials have provided few details of the settlement.
Schoellhorn, 61, sued the North Chicago-based drug manufacturer after the board voted to remove him as chief executive officer and chairman. He contended Abbott breached a contract to employ him as chairman until his retirement at age 65.
In a one-paragraph statement Wednesday, Abbott said Schoellhorn’s suit will be dismissed and he will retire from Abbott on Aug. 31.
Schoellhorn’s lawyer, John Mathias, wouldn’t comment on the settlement.
The settlement apparently rescinds Abbott’s firing of Schoellhorn, which took place in April after a state court lifted a temporary restraining order obtained by Schoellhorn.
Abbott’s board had voted in December to remove him as chief executive and on March 9 to remove him as chairman.
Schoellhorn filed suit the same day, claiming the dismissal was contrary to company bylaws and pursuant to fraudulent board resolutions.
The company had charged in court documents that Schoellhorn misappropriated corporate assets through private use of company airplanes and falsified expense reports.
The company also alleged he caused company employees to perform personal services for him and to buy personal items for him with company funds.
Schoellhorn denied the charges.