Abbott Laboratories Settles NEC Formula Lawsuits for $670 Million

Abbott Laboratories agreed to pay $670 million to settle a high-profile lawsuit and claims involving approximately 2,000 infants. The litigation alleges that the company's cow's milk-based formula for premature infants causes necrotizing enterocolitis (NEC), a dangerous intestinal disease.

The settlement follows a Missouri appellate court decision to uphold a $495 million judgment in a case brought by Margo Gill, whose daughter suffered brain damage and the removal of 75% of her intestine. Abbott stated the payment is not an admission of liability and maintains the safety of its products.

Despite this agreement, the company faces 1,700 additional lawsuits involving roughly 12,700 infants. Other manufacturers, including Mead Johnson Nutrition, are facing similar litigation, with a bellwether case currently underway in Chicago federal court.

Federal health agencies have pushed back against the claims. The U.S. Food and Drug Administration, the Centers for Disease Control and Prevention, and the National Institutes of Health issued a joint statement asserting there is no conclusive evidence that preterm infant formula causes NEC, suggesting instead that the absence of human milk is the associated risk factor.