Abbott settles preterm formula lawsuits for $670 million

The settlement marks a significant shift in Abbott's strategy regarding litigation involving necrotizing enterocolitis (NEC). While the company continues to maintain that its products are safe and essential for neonatal care, it opted for this compromise rather than pursuing further appeals or paying the mounting interest on the initial judgment. The agreement does not constitute an admission of liability, and the company maintains that no reliable scientific evidence links its specialty formulas to the intestinal disease.

This resolution coincides with a series of recent legal victories for formula manufacturers, including favorable rulings in federal Multidistrict Litigation and the reversal of a $60 million verdict against Mead Johnson. Despite these developments, roughly 1,700 lawsuits remain active across various jurisdictions, involving claims on behalf of approximately 12,700 infants. Abbott has signaled its intent to continue vetting these remaining cases, citing concerns over plaintiffs who may have been misidentified or those who were never diagnosed with the condition in question.