Similac Maker Reaches Agreements to Settle Baby Formula NEC Lawsuits for $670M

Baby formula lawsuits involving approximately 2,000 infants could be nearing resolution. Abbott Laboratories, the maker of Similac, reached agreements this week to settle the claims for $670 million.

It’s a milestone moment for this litigation, which involves claims that certain formulas caused a dire intestinal condition called necrotizing enterocolitis (NEC) when fed to premature infants.

Among the group of cases covered in the settlement is the Gill case, which resulted in a landmark $495 million verdict for an infant who was left with permanent brain damage after developing NEC.

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While the settlement is significant, it does not resolve the broader litigation. Abbott will still face about 1,700 baby formula lawsuits involving 12,700 infants that are not included in the deals.

Mead Johnson, the maker of Enfamil, is also facing similar lawsuits. The first baby formula trial in federal court involving an Enfamil case began this week.

That trial will be closely watched as a bellwether for the litigation after three previous baby formula lawsuits in federal court failed to reach a jury. A positive result for the plaintiff could spur further settlement talks.