Settlement Reached for Landmark $495 Million Baby Formula NEC Lawsuit Verdict

Abbott Laboratories has agreed to settle a landmark baby formula NEC lawsuit that resulted in a massive verdict at trial.

That case, which went before a jury in 2024, was brought by a mother who said that her infant developed the serious intestinal condition necrotizing enterocolitis (NEC). The child suffered permanent brain damage after being fed one of Abbott’s Similac formulas designed for premature infants.

The St. Louis jury eventually ordered Abbott to pay her a staggering $495 million. The company appealed that initial verdict, which was upheld by an appellate court earlier this year. The case has been working its way through the process ever since.

But the case has now reached a resolution, with Abbott agreeing to a confidential settlement. Terms have not been released, and the deal will still need to be approved in the Missouri court.

That case is one of hundreds of baby formula lawsuits that have been filed over claims that Abbott and Mead Johnson’s formulas caused NEC when fed to premature infants. Trial results have been mixed. Some trials have resulted in massive payouts, while other cases have failed to reach a jury at all.

As of this month, there are 825 baby formula lawsuits active in federal court.

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First Federal Baby Formula NEC Trial Now Underway

The baby formula lawsuits also reached a key milestone this month when a federal bellwether case advanced to trial for the first time.

This matters because all trials that have taken place so far have been held in state court. In federal court, hundreds of baby formula lawsuits have been grouped together in multidistrict litigation (MDL). This places the cases before the same judge, allowing them to move through a coordinated legal process that can be faster, more streamlined and lead to settlement talks.

But lawsuits in the MDL have struggled to reach trial, with the judge overseeing those lawsuits shooting down three previous cases from advancing to that stage.
The bellwether trial now underway involving Enfamil will be closely watched. Bellwethers essentially serve as test cases, giving both sides a chance to see how their claims hold up before a jury.

The outcomes of bellwether trials can play a significant role in settlement negotiations.