Abbott Settles Infant Formula Cases for $670M After $495M Verdict
Synopsis
The agreement resolves claims brought by 2,000 people over specialty formulas for preterm infants, including a Missouri case involving an Illinois girl who developed the serious bowel disease necrotizing enterocolitis.
Abbott $670 million infant formula settlement will address the class-action lawsuits brought by approximately 2,000 people over special formulas for preterm infants, following allegations of linking to necrotizing enterocolitis, or NEC.
The case of Illinois Resident Margo Gill whose daughter was diagnosed with NEC is part of the settlement. In 2024, a jury in St. Louis found Abbott liable and awarded $495 million to Margo Gill, which a Missouri appeals court upheld the verdict in May 2026.
Abbott to Drop Appeal of Gill Verdict as Part of $670 Million Infant Formula Settlement; Denies Responsibility
Under the terms of the Abbott $670 million infant formula settlement, the company agreed to abandon its appeal of the Gill verdict. However, Abbott did not admit wrongdoing, saying it continued to believe that its products were safe.
The products in question are specialized hospital formulations and complementary food products for preterm infants, not baby formulas available in retail stores.
Broader Litigation Remains
However, the broader litigation continues although the Abbott NEC case settlement is just one part of it. There are still around 1,700 lawsuits pending against Abbott and the Reckitt-Babyon owned and operated Mead Johnson, which makes Enfamil, according to the company.
These are claims brought by as many as 12,700 plaintiffs, according to Abbott, but the figure includes multiple claims from families with infants who had NEC diagnosis at birth before receiving any of the company's formula, as well as some cases in which the manufacturer could not be determined.
Several of the cases have been consolidated before a single judge in Chicago, with others being heard in various state courts in Illinois, Missouri, and Pennsylvania.
The jury trials have been largely inconclusive, with some resulting in verdicts for the manufacturers and others finding in favor of plaintiffs.
NEC or Necrotizing Enterocolitis is a devastating illness, mostly affecting preterm infants, with an average mortality rate over 20%, according to Reuters.
Preterm Birth Keeps Demand in Focus
Preterm Birth is a significant problem across the world, as the Born Too Soon report published by the World Health Organization shows, with 13.4 million preterm births recorded in 2021 alone, representing 9.9% of all live births.
The US had a similar preterm birth rate in 2020 (20%) and ranks among the highest with India (3.02 million) being first overall, with 13.2% of births being preterm. The Southern Asia region also experiences high rates of preterm birth (13.2%) compared to Northern America, Europe, Australia, and New Zealand (all <8%).
The Abbott baby formula litigation 2026 follows Abbott's recent earnings report, which showed that the company is performing well in terms of financial results. The firm reported $12.6 billion in sales in the second quarter of 2026, and $1.31 of adjusted diluted EPS while Nutrition reported $2.1 billion in quarterly sales .
Abbott has raised its full-year 2026 adjusted diluted EPS guidance to 5.45-5.60 from 5.38-5.58.
Source: Reuters
Pooja Malik is a business journalist with over six years of experience covering startups, entrepreneurship, and emerging trends. She has previously worked with leading media platforms such as YourStory Media and BW BusinessWorld, where she reported on business, policy, and market developments. Currently, she serves as Editor at The Inspirepreneur Magazine, where she writes and edits stories across business, lifestyle, and travel, with a focus on clarity, accuracy, and reader relevance.
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