Abbott Agrees to $670 Million Settlement in NEC Baby Formula Litigation

Abbott Laboratories has agreed to pay approximately $670 million to resolve claims involving about 2,000 infants in ongoing litigation over allegations that its cow’s milk-based formula products for premature babies can increase the risk of necrotizing enterocolitis, or NEC.

The agreement includes a Missouri case that resulted in a $495 million jury verdict against Abbott, as well as approximately 2,000 additional claims.

Abbott denies that its preterm infant formula causes NEC and says the settlement is not an admission of liability.

The settlement follows the Missouri case Margo Gill v. Abbott Laboratories, involving a child who was born prematurely and later developed NEC after receiving Abbott’s Similac formula.

The plaintiffs alleged the child developed NEC within days of receiving the formula and ultimately had approximately 75 percent of her intestine removed. She was left with severe, lifelong medical complications.

A St. Louis jury returned a $495 million verdict against Abbott in 2024. A Missouri appeals court upheld the judgment in May 2026.

Abbott said the judgment could have grown to more than $600 million with interest. The company instead reached the $670 million agreement to resolve the Gill case and approximately 2,000 additional claims.

NEC is a serious intestinal disease that primarily affects premature infants. It can cause severe inflammation and damage to intestinal tissue and may lead to surgery, long-term complications, or death.

Lawsuits have been filed against Abbott and Mead Johnson over cow’s milk-based products made for premature infants, including products sold under the Similac and Enfamil brands.

Plaintiffs allege the manufacturers failed to adequately warn parents and healthcare providers about the alleged increased risk of NEC associated with these products. Both companies have disputed the allegations.

The $670 million settlement does not resolve all NEC baby formula claims.

Abbott said approximately 1,700 lawsuits involving claims on behalf of about 12,700 children remain pending against Abbott and Mead Johnson in state and federal courts.

The litigation has produced different outcomes. Some juries have returned significant verdicts for families, while other cases have resulted in defense verdicts or dismissals.

Earlier this month, a Missouri appeals court also upheld an order requiring Abbott and Mead Johnson to face a new trial in a separate NEC case after the original defense verdict was vacated.

Federal NEC cases are also continuing in Chicago, where hundreds of lawsuits have been consolidated for coordinated proceedings.

The $670 million agreement is a significant development in the NEC litigation, but thousands of claims remain unresolved.

Abbott and Mead Johnson continue to deny allegations that their products cause NEC. In contrast, families continue to pursue claims alleging they were not adequately warned about the potential risks of cow’s milk-based products for premature infants.

Levin Papantonio attorney Sara Papantonio is actively involved in the federal NEC multidistrict litigation, helping represent families in claims involving preterm infant formula. The firm continues to follow developments as cases move forward in state and federal courts across the country.

Sources: Law360, Law.com, Legal Newsline