Was Jim Cramer Right About These 12 Stocks?

5. Abbott Laboratories (NYSE:ABT)

Number of Hedge Fund Investors: 64

Abbott had lost a massive $495 million lawsuit over specialized baby formula back when the episode was aired, and Cramer said at the time:

“I knew Abbott Labs was in trouble, but I didn’t know the extent of the damage … honestly, this verdict is an outrage.”

Abbott’s formula is used in neonatal intensive care units and recommended by doctors—yet trial lawyers successfully convinced a jury that it was causing harm, despite no clear scientific evidence.

His fears were that Abbott might pull the product entirely rather than risk further lawsuits—just like Johnson & Johnson did with baby powder. Abbott initially dropped but rebounded by the close, which Cramer saw as a sign that Wall Street saw the lawsuit as excessive:

“I’m honestly amazed that Abbott’s stock after open is down more than 4% … perhaps that’s because the stock’s already down, perhaps it’s because Wall Street recognizes a joke when it sees one.”

He expressed his stance against the lawsuit, supporting the notion that the company wasn’t actually trying to profit from this product, saying:

“The company didn’t hide anything. I very much doubt the risk, and the product’s a money loser anyway”.

The stock however, has rallied by 23% since Cramer’s comments in July 2024.

More recently in January 2025, Cramer praised the company, noting:

“Abbott, not understood very well because they’re doing tremendous stuff when it comes to diabetes. People don’t seem to care.”