Abbott agrees to $670M settlement over infant formula lawsuits
What's the story
Abbott Laboratories has agreed to a $670 million settlement to partially resolve ongoing litigation over its specialty formulas for preterm infants. The settlement was reached with three law firms representing some 2,000 claimants. It comes after an Illinois mother was awarded a staggering $495 million in 2024 when a jury found that Abbott's formula had caused her daughter to develop necrotizing enterocolitis (NEC), a life-threatening bowel disease.
Company stance
No admission of liability
Despite the huge payout, Abbott has not admitted liability. The company remains confident in the safety of its infant formula products.
In a statement, Abbott said that this deal is a step toward "substantially resolving the overall litigation."
The company also revealed that it still faces claims from as many as 12,700 people alleging harms related to its or Mead Johnson's formulas.
Health impact
Ongoing lawsuits
NEC, which mostly affects premature newborns, can lead to the death of bowel tissue with a mortality rate of over 20%.
Abbott and Mead Johnson (a unit of Reckitt that makes Enfamil formulas) have been sued in about 1,700 cases.
Some lawsuits name both companies as defendants while others are filed on behalf of multiple plaintiffs.
Abbott is working to eliminate duplicate and unsupported claims.
Ongoing scrutiny
Hospital formulas under scrutiny
Abbott's hospital formulas, which are cow's milk-based and specially made for infants in hospital settings, are still under scrutiny.
The company had previously suggested that these products might become unavailable due to litigation.
However, US regulatory agencies and a National Institutes of Health-convened working group said in a 2024 report that current evidence links higher NEC rates to the absence of breast milk rather than formula use.
Settlement details
Lawsuits filed in state and federal courts
Abbott said the interest on the 2024 verdict would have entitled the plaintiff to about $600 million.
The company chose to settle instead of continuing to fight or paying it in full.
The lawsuits have been filed in state and federal courts, with more than 825 federal cases consolidated before a judge in Chicago.