New lawsuit claims Invacare slow to reveal troubles from employees
CLEVELAND – A former Invacare employee seeks class action status for a lawsuit she has filed against the company, alleging it failed to inform employees that it was in trouble with the U.S. Food and Drug Administration (FDA) over quality control procedures, Cleveland Business News reports. Invacare’s trouble with the FDA led the company’s retirement plan—which, in 2011, held $21 million in company stock, about 12% of total assets—to take a big hit, according to the lawsuit. Plaintiffs want Invacare to reimburse the plan for the $11.5 million it has lost since July 2010, the lawsuit states. Invacare told Cleveland Business News that it is showing the FDA it is in compliance with regulations through several audits. “We don’t think the lawsuit has any merit,” said Lara Mahoney, director of investor relations and corporate communications at Invacare.