Abbott Pays $670M Over Infant Formula Lawsuits

Abbott has agreed to a $670 million settlement to resolve approximately 2,000 lawsuits concerning its specialized infant formulas. These claims alleged that the company's cow's milk-based formulas, intended for hospital use, led to necrotizing enterocolitis (NEC), a severe bowel disease primarily affecting premature newborns.

The company denied any wrongdoing and stated its continued confidence in the safety of its products. This settlement is viewed as a step toward concluding the broader litigation. Abbott indicated that the agreement with three law firms represents a more favorable path than continuing appeals or fully paying a previous jury award.

One significant claim involved a jury award of $495 million to Margo Gill, an Illinois mother whose daughter developed NEC after receiving Abbott's formula. This verdict was upheld by a Missouri appeals court in May 2026. The total owed, including interest, was estimated to reach $600 million for this case alone.

Necrotizing enterocolitis destroys intestinal tissue, potentially causing organ failure. The lawsuits specifically target cow's milk-based formulas and breast-milk fortifiers distributed in hospitals, distinct from retail products. Abbott is working to reduce the number of active cases, citing repeat filings and claims lacking specific product identification.

Thousands of cases remain consolidated in federal and state courts, with mixed trial outcomes. Abbott and Mead Johnson, another manufacturer, have argued that breast milk, not formula, is the critical factor in NEC risk. A 2024 NIH working group report suggested a shortage of breast milk, rather than formula exposure, is linked to higher NEC incidence.