Abbott Reaches $670 Million Settlement in Infant Formula Litigation

Abbott has agreed to a $670 million settlement over allegations that its specialty formulas for preterm infants caused necrotizing enterocolitis. The settlement involves three law firms and about 2,000 claimants. Abbott denies liability but seeks to resolve the ongoing litigation tied to its and Mead Johnson's formulas.

Abbott Laboratories announced a significant $670 million settlement this Thursday to address the ongoing legal battle concerning alleged injuries linked to their specialty formulas for preterm infants. This settlement emerges as a key move in managing wide-scale litigation against the pharmaceutical giant.

The accord includes agreements with three law firms, representing approximately 2,000 claimants, among them an Illinois mother awarded a staggering $495 million judgment in 2024 after a jury attributed her child's deadly condition to Abbott's formulas. Abbott, however, has consistently denied any liability, underscoring their confidence in product safety.

Simultaneously, Abbott faces approximately 1,700 lawsuits, with some involving Mead Johnson—another formula manufacturer—highlighting the complexities and scale of this litigation. While the settlement addresses some of these claims, considerable numbers persist. The companies and health bodies emphasize the protective benefits of breast milk as distinct from any alleged formula risks.