NEC Baby Formula Lawsuit Settlement Payouts

According to legal industry estimates, necrotizing enterocolitis (NEC) lawsuit settlement payouts could range from $50,000 to $600,000 per person.

In the NEC cases that have already been litigated, plaintiffs received a combined $555 million. This includes trials involving Abbott Laboratories, which makes Similac, and Mead Johnson, which makes Enfamil.

Formula makers and plaintiffs have not reached a global settlement. If they agree to one, specific payouts will vary from lawsuit to lawsuit.

For example, cases involving more severe injuries or even death could receive larger payouts than cases involving minor injuries.

While hundreds of cases have been filed, only a couple have gone to trial and received substantial payouts.

More than 700 active NEC lawsuits were consolidated into multidistrict litigation (MDL). This helps streamline the process of evaluating these cases.

A handful of cases from the MDL were chosen as bellwether trials. These trials serve as test cases that give both sides an idea of the strength of their position and where litigation may head.

One bellwether trial has already concluded, and the judge ruled in favor of formula manufacturers for two reasons:

• There wasn’t adequate proof that Abbott’s alleged failure to warn about the increased NEC risk from its formula actually caused the plaintiff’s infant to develop NEC.
• The plaintiff didn’t provide sufficient evidence that an alternative formula was available.

If these concerns can be addressed in future trials, the rulings may be different.

The next bellwether trial is scheduled for August 2025. Two others are set for November 2025 and February 2026.

An NEC lawsuit may be decided by a jury that determines compensatory and punitive damages.

Compensatory damages compensate for the actual financial loss the person who filed the lawsuit suffered. Punitive damages penalize the defendant.

For example, the baby formula trial from July 2024 awarded $95 million in compensatory damages and $400 million in punitive damages to the family of a baby who developed NEC.

If a global settlement is eventually reached for baby formula lawsuits, then the payouts for each individual case may vary based on specific criteria.

Factors that influence individual payout amounts may include the financial damages that the family or parents of the infant suffered and the emotional trauma that they experienced. The severity and type of the injury to the infant may also impact payouts.

If you aren’t sure if you qualify for an NEC lawsuit, we’re here to help. We partner with experienced law firms to ensure that you get the information and support you need to seek justice.

NEC settlement payouts can’t occur until a settlement has been reached between plaintiffs and defendants. It can be challenging to predict if and when a settlement will occur. However, the upcoming bellwether trials will likely impact the pending litigation.

The good news for those with pending cases is that plaintiffs have already seen significant wins in state court trials. These cases are not part of the lawsuits grouped together in federal court, but their results may impact settlement negotiations.

Any loss for baby formula manufacturers can impact future lawsuits. So far, three trials have been held in state court. The first two paid millions to plaintiffs.

Baby formula manufacturers initially won the third trial. Several months later, the judge determined that their defense team had committed misconduct and erased the win, ordering a retrial.

With the order for a retrial, the only definitive win that baby formula makers have earned so far came in the first bellwether trial.

The judge overseeing the cases pointed to what the doctor who treated the infant said in a deposition as a key deciding factor. The doctor had implied that he would have fed formula to the infant anyway even if there were stronger NEC warnings.

Plaintiffs’ success in the upcoming bellwether trials will be critical. Winning those trials could result in a stronger settlement for many cases.

If NEC has impacted your family, Drugwatch can help. We partner with trusted law firms to maximize payouts for those affected by this issue. The legal process can be confusing, but you don’t have to navigate it alone.

To successfully file an NEC lawsuit, you likely will need to provide documentation or medical records showing that your infant was fed one of the formulas in question and developed NEC.

Don’t worry if you aren’t sure how to get those records. We work with experienced mass tort law firms who can help you gather what you need to build the strongest possible case.

The next bellwether trial for the baby formula lawsuits is scheduled for August. A win in that trial could go a long way in encouraging a settlement for these cases.