Abbott reaches US$670 million settlement over infant formula claims

Abbott has reached a US$670 million settlement with three law firms to resolve claims from approximately 2,000 people alleging harms related to its specialty formulas for preterm infants. The agreement includes the resolution of a major case in which a jury had previously ordered Abbott to pay US$495 million after finding its formula caused a child to develop necrotizing enterocolitis, a serious bowel disease with a mortality rate exceeding 20 per cent.

While Abbott agreed to drop its appeals regarding the Illinois verdict, the company did not admit liability and maintains that its products are safe. The settlement is described by the company as a step toward “substantially resolving the overall litigation.”

Despite this deal, Abbott faces significant ongoing legal challenges. The company noted that up to 12,700 similar claims remain, though this figure includes duplicate filings and claims involving infants who developed the disease prior to formula use. Approximately 1,700 lawsuits have been filed against Abbott and Mead Johnson, a unit of Reckitt, which manufactures Enfamil formulas. Both companies have stated that while breast milk provides protection against necrotizing enterocolitis, their formulas do not cause the condition.