Abbott Ordered to Pay $495M in Premature Infant Formula Lawsuit

A jury ordered Abbott Laboratories to pay $495 million after finding that their formula caused a premature Illinois girl to develop a dangerous bowel disease. This is the first trial among hundreds of similar claims. Abbott disputes the verdict, asserting there's no scientific evidence linking their product to the disease.

A jury on Friday found that Abbott Laboratories' specialized formula for premature infants caused an Illinois girl to develop a dangerous bowel disease, ordering the healthcare company to pay $495 million in compensatory and punitive damages. The verdict in St. Louis, Missouri state court marks the first trial against the company among hundreds of similar claims across the country.

The jury awarded $95 million in compensatory damages and $400 million in punitive damages. Abbott's attorney, James Hurst, expressed concern that the verdict sends the wrong message and may limit doctors' options for feeding preterm infants who cannot breastfeed.

Abbott intends to appeal. Company spokesman Scott Stoffel emphasized that specialized formulas are vital for premature infants and argued there's no scientific evidence linking their products to necrotizing enterocolitis (NEC). The case, brought by Illinois resident Margo Gill, alleges Abbott failed to warn that their formula could cause NEC, a potentially fatal disease, in premature babies.

Gill's child, Robynn Davis, developed NEC after being given Abbott's formula in 2021, resulting in irreversible neurological damage. Nearly 1,000 lawsuits have been filed against Abbott and Reckitt Benckiser, with over 500 centralized in an Illinois federal court; others are pending in Missouri and Pennsylvania.

NEC has a high fatality rate and mostly affects premature newborns. Despite legal challenges, the NEC Society advocates for feeding decisions to be made by medical professionals, not in courtrooms. The litigation has impacted investor confidence, although analysts believe ultimate liability will be minimal. Separate litigation over a shutdown of Abbott's Michigan plant and recall of formula, contributing to a nationwide shortage in 2022, is ongoing with no trials yet commenced.

(With inputs from agencies.)