Abbott has agreed to pay $670 million to partially settle thousands of claims alleging that its specialty infant formulas for premature babies were linked to a serious intestinal disease. The settlement covers claims brought by around 2,000 people and includes a decision by Abbott to end its appeal of a major 2024 verdict.
Settlement Covers Around 2,000 Claims
The agreement was reached with three law firms representing plaintiffs who have filed claims against Abbott, the maker of Similac. The company said the settlement is intended to help substantially resolve the broader litigation but stressed that it does not admit liability.
Abbott said it continues to stand behind the safety of its infant nutrition products.
Major $495 Million Verdict Included
The settlement also resolves Abbott’s appeal of a $495 million judgment awarded in 2024 to an Illinois mother whose daughter developed necrotizing enterocolitis (NEC). A Missouri appeals court upheld the verdict in May 2026.
Abbott said interest on the original judgment could have increased the amount owed to about $600 million, influencing its decision to settle rather than continue the appeal.
Thousands of Claims Still Pending
Despite the settlement, Abbott said it faces claims from as many as 12,700 people. The company noted that the figure may include duplicate filings, cases involving infants who developed NEC before receiving formula and claims that name both Abbott and Mead Johnson without identifying which product was used.
More than 825 federal cases have been consolidated in Chicago, while additional lawsuits remain pending in state courts, including Illinois, Missouri and Pennsylvania.
Focus on Necrotizing Enterocolitis
NEC is a potentially life-threatening intestinal disease that primarily affects premature newborns. It causes intestinal tissue to die and has a reported mortality rate of more than 20%.
The litigation centers on specialty, cow’s-milk-based products used in hospitals for premature infants, including formulas and products designed to fortify breast milk. These products differ from standard infant formulas sold in retail stores.
Scientific Evidence Remains a Key Issue
Abbott and Mead Johnson have maintained that their products do not cause NEC and have pointed to the protective role of breast milk against the disease.
A 2024 report from U.S. regulatory agencies and a National Institutes of Health-convened working group said available evidence associated higher NEC rates with the absence of breast milk, rather than establishing that formula itself causes the disease.
Trials Have Produced Mixed Outcomes
The companies have experienced mixed results in the relatively limited number of cases that have gone to trial. Some juries have ruled in favor of manufacturers, while others have sided with plaintiffs.
Meanwhile, the first federal bellwether trial against Mead Johnson is underway in Chicago, following earlier federal cases that were dismissed before reaching trial.
