Abbott's $670 Million Settlement Resolves Infant Formula Legal Claims

Abbott reached a $670 million settlement with three law firms to resolve claims by 2,000 people regarding alleged harms from its specialty infant formulas. A jury had earlier ordered Abbott to pay $495 million for a related case. This settlement addresses similar lawsuits centralized in several states.

Abbott Laboratories announced on Thursday a substantial financial resolution, agreeing to a $670 million settlement with three law firms. This agreement aims to resolve legal claims brought forth by 2,000 individuals alleging harm caused by the company's specialty formulas designed for preterm infants.

The settlement encompasses a significant case in which Abbott was previously ordered to pay $495 million. This verdict came after a St. Louis jury in 2024 found that the company's infant formula was responsible for an Illinois girl's development of necrotizing enterocolitis, a severe bowel condition. Abbott's appeal against this ruling is currently with Missouri's Supreme Court, following an earlier affirmation by a state court of appeals in May 2026.

In a broader legal context, close to 1,000 comparable lawsuits have been initiated against both Abbott and Mead Johnson, the manufacturer of Enfamil formulas. Over 800 of these cases are consolidated in an Illinois federal court, with additional claims awaiting proceedings in various state courts like Illinois, Missouri, and Pennsylvania. This severe intestinal illness, primarily affecting premature infants, results in the death of bowel tissue and bears a mortality risk exceeding 20%. Companies maintain that while breast milk offers protection against the disease, their formulas do not cause it.