Abbott Laboratories agrees $670 million settlement over premature infant formula claims
Abbott Laboratories just agreed to a $670 million settlement after about 1,700 lawsuits claimed its specialty infant formulas harmed premature infants.
This comes on the heels of a huge 2024 verdict in which an Illinois mother was awarded $495 million because her child developed a serious bowel disease, necrotizing enterocolitis, or NEC, linked to Abbott's formula.
Abbott did not admit liability but remains confident in the safety of its infant formula products.
Abbott faces thousands more NEC claims
Even with this big payout, Abbott faces thousands more claims, though the company believes many are duplicates or weak cases.
The lawsuits focus on NEC, a life-threatening condition in premature infants.
While some regulators say lack of breast milk is the real issue, not necessarily formula use, Abbott's hospital formulas are still under scrutiny.
The company stands by its products but dropped an appeal after losing in court earlier this year.