Abbott to Pay $670 Million to Settle Baby-Formula Litigation
By Kelly Cloonan
Abbott agreed to pay $670 million to resolve a lawsuit over its specialty formulas for premature infants as well as about 2,000 related claims.
The bulk settlement relates to the Gill lawsuit, in which a Missouri jury ordered Abbott to pay $495 million in damages after determining the company failed to warn that its formula for preterm infants increased the risk for a bowel disease. Abbott's appeal to the 2024 verdict was denied.
Abbott said it opted to enter agreements to resolve both the Gill case and other necrotizing enterocolitis claims to avoid continuing to appeal or paying about $600 million for just the Gill case, which represents the initial judgment plus accrued interest to date.
Abbott said the agreements are not an admission of liability, and it stands by the safety of the products.
Following the agreements, there are roughly 1,700 lawsuits pending in federal and state courts involving claims on behalf of about 12,700 individual infants, Abbott said.
Write to Kelly Cloonan at kelly.cloonan@wsj.com
(END) Dow Jones Newswires
August 20, 2026 17:41 ET (21:41 GMT)
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