Abbott Laboratories (Abbott (ABT)) is heading to federal court over claims that its PediaSure Grow & Gain drinks don't actually help kids grow taller — despite what the marketing might suggest. A federal judge ruled Thursday that a proposed class-action lawsuit against the company can move forward.

U.S. District Judge Paul Engelmayer said consumers could reasonably interpret Abbott's marketing as promising height growth, even though the company's claim that PediaSure was "clinically proven to help kids grow" didn't explicitly say what kind of growth. The judge pointed to product packaging featuring a cartoon giraffe alongside ruler-like markings extending to the giraffe's head. According to the ruling, jurors could conclude that the term "grow" referred to height while "gain" referred to weight gain.

Engelmayer also found that Abbott's advertising campaigns could support consumers' interpretation that PediaSure promotes height growth. Abbott defended its marketing practices, describing PediaSure's labeling as appropriate and supported by evidence.

The lawsuit was filed in May 2023 by a grandmother named Noriega, who alleged that her grandson consumed two PediaSure drinks daily for about a year. Despite continued use, she said her grandson remained short for his age and became overweight, prompting her to stop purchasing the product. Abbott has maintained that PediaSure is designed for children ages 2 to 13 and is intended to help those at risk of low weight-for-height measurements improve within eight weeks.

Engelmayer also rejected Abbott's effort to exclude testimony from a Columbia Business School professor who concluded that the company's marketing clearly conveyed that "grow" referred to height growth. The professor also opined that consumers were unlikely to notice or understand disclaimers stating that PediaSure had been studied in children at risk of malnutrition.

Abbott shares were up 0.65% at $91.37 at the time of publication on Friday.