Similac Baby Formula Maker Abbott And Reckitt Face Hundreds Of Baby Formula Lawsuits

Abbott Laboratories ABT is set to face trial on Monday over allegations that its formula for preterm infants used in neonatal intensive care units causes a potentially deadly bowel disease known as necrotizing enterocolitis (NEC).

This is the second trial out of hundreds of similar lawsuits in the U.S.

Also Read: Class Action Against Abbott’s Glucerna Products Proceeds in Federal Court.

Lawyers for Abbott and Illinois resident Margo Gill will make their opening statements to jurors in St. Louis, Missouri, with the trial expected to last most of the month.

Gill claims her premature infant developed NEC after being fed Abbott’s products for premature babies, which causes the death of bowel tissue, primarily affects newborns, and has a fatality rate of 15% to 40%.

Although Gill’s child survived, they now suffer from long-term health problems.

Reuters noted Abbott’s response, stating that Gill’s child “suffered from a traumatic brain injury in utero and at birth, long before she was fed any Abbott products,” and argued that “no one is to blame” for her condition.

Close to 1,000 lawsuits have been filed in federal or state courts against Abbott and Enfamil formula maker Reckitt Benckiser Group Plc’s RBGLY RBGPF, alleging that cow’s milk-based formula products for premature infants caused NEC.

More than 500 cases are centralized in an Illinois federal court, with others pending in Illinois, Missouri, and Pennsylvania.

The lawsuits claim the companies failed to warn that infants given their products are at a higher risk of NEC than those breastfed or given donor milk or human milk-derived formula.

The first lawsuit to go to trial, against Reckitt in Illinois, ended with a $60 million jury verdict in March. Reckitt appealed the verdict, arguing that the plaintiff’s case relied on unsound expert testimony.

These NEC lawsuits are separate from ongoing litigation against Abbott over the shutdown of its Sturgis, Michigan, plant and subsequent recall of baby formula batches for possible contamination, which contributed to a nationwide formula shortage in 2022. No trials have been held for these cases yet.

Price Action: ABT shares are down 1.48% at $102.48 at the last check on Monday.

Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.

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