Abbott to pay US$670mil to settle some preterm infant formula cases

Abbott has agreed to a $670 million settlement to address claims related to its specialty infant formulas used for preterm infants, according to reports. The settlement was reached with three law firms representing approximately 2,000 plaintiffs, including a mother from Illinois who won a $495 million judgment in 2024 after her daughter developed necrotizing enterocolitis (NEC) due to the formula.

Abbott plans to drop its appeal of the 2024 verdict, which was upheld by a Missouri appeals court earlier this year, and has not admitted liability in the settlement. The company maintains confidence in the safety of its infant formula products. Abbott, known for its Similac formulas, is part of a larger litigation involving around 1,700 lawsuits against it and Mead Johnson, a unit of Reckitt that manufactures Enfamil formulas.

While the settlement addresses a portion of these claims, Abbott still faces potential claims from up to 12,700 individuals, though many are believed to be duplicates or involve infants who developed NEC before receiving formula. The settlement is a step towards resolving the overall litigation, according to Abbott, which is working to eliminate duplicate and unsupported claims.

Necrotizing enterocolitis, a deadly bowel disease affecting premature newborns, has an estimated mortality rate of over 20%. Current evidence suggests that the disease is more linked to the absence of breast milk than to formula use. The affected products are cow's milk-based formulas and mother's milk fortifiers used in hospital settings, not ordinary formulas intended for consumer purchase.

The lawsuit settlement also affects federal cases consolidated in a Chicago courtroom, with numerous others pending in state courts across Illinois, Missouri, and Pennsylvania.