American Home Products
Workers at AHP plants in Elkhart, Ind. and Great Valley, Pa. file a $1 bil. class action RICO anti-racketering civil suit against the firm on Feb. 26 in San Juan, Puerto Rico federal court. The suit alleges that AHP illegally "destroyed" more than 1,400 mainland jobs in favor of plants in Puerto Rico. The documents note that in 1990, AHP reported federal tax savings of $84.1 mil. under Section 936 rules. AHP's two Puerto Rico plants "with less than 2% of AHP's worldwide workforce, today account for more than 35% of the company's net income," the suit alleges. An earlier suit filed against AHP in January 1991 by the Chemical and Atomic Workers International Union in connection with the Elkhart plant shutdown ("The Pink Sheet" Jan. 28, 1991, T&G-10), goes to trial March 30.
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