Abbott to Pay $670 Million to Settle Baby-Formula Litigation
Abbott will pay $670 million to resolve 2,000 claims regarding its specialty infant formulas. The agreement settles lawsuits alleging that the company's products caused necrotizing enterocolitis (NEC) in preterm infants. This settlement includes the resolution of an appeal tied to a previous $495 million verdict. While this payment addresses a significant portion of the ongoing litigation, the company is settling specific claims rather than all possible disputes related to its preterm formula products.
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- ✓ Abbott is paying $670 million to settle litigation involving its baby formula.
- ✓ The settlement ends 2,000 infant formula claims.
- ✓ The litigation involves specialty formulas designed for preterm infants.
- ✓ The agreement resolves an appeal over a $495 million infant formula verdict.
What changed
Abbott reached a $670 million agreement to resolve 2,000 infant formula claims and an appeal of a $495 million verdict.
Live updates
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Abbott to Pay $670 Million to Settle Infant Formula Litigation
Abbott will pay $670 million to resolve 2,000 claims regarding its specialty infant formulas. The agreement settles lawsuits alleging that the company's products caused necrotizing enterocolitis (NEC) in preterm infants. This settlement includes the resolution of an appeal tied to a previous $495 million verdict. While this payment addresses a significant portion of the ongoing litigation, the company is settling specific claims rather than all possible disputes related to its preterm formula products.
Why it matters
NEC is a severe intestinal disease that primarily affects premature babies. These lawsuits target the maker of Similac, alleging the formula contributed to the condition. This legal action follows years of disputes over the safety of specialty formulas for preterm infants.
What is confirmed
- Abbott is paying $670 million to settle litigation involving its baby formula.
- The settlement ends 2,000 infant formula claims.
- The litigation involves specialty formulas designed for preterm infants.
- The agreement resolves an appeal over a $495 million infant formula verdict.
- The lawsuits relate to necrotizing enterocolitis (NEC).
What to watch next
- Details on whether remaining infant formula claims will be settled or litigated
- Court approval of the $670 million settlement terms
confidence 100%Sources used for this update (5)
- WSJ — Abbott to Pay $670 Million to Settle Baby-Formula Litigation
- Reuters — Abbott settles appeal over $495 million infant formula verdict
- Abbott MediaRoom — Abbott reaches agreements to resolve a portion of litigation involving its specialty formulas for preterm infants
- Bloomberg.com — Abbott Will Pay $670 Million to End 2,000 Infant Formula Claims
- Drugwatch.com — Similac Maker Reaches Agreements to Settle Baby Formula NEC Lawsuits for $670M
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