Abbott agrees to $851.6 million settlement in preterm infant formula lawsuits

Abbott disclosed that it has settled for $670 million (S$851.6 million) with three law firms on behalf of about 2,000 plaintiffs alleging harm from its preterm infant formulas. The settlement includes a case where an Illinois mother secured a $495 million jury verdict after a court found the formula caused necrotising enterocolitis in her daughter; Abbott will cease its appeal of that judgment, which a Missouri appeals court affirmed.

The company emphasized that it has not admitted fault and continues to stand by the safety of its products. Abbott noted that roughly 1,700 lawsuits have been filed against it and Mead Johnson, with additional claims potentially involving up to 12,700 individuals, though many may be duplicates or lack clarity on the specific formula used. The settlement is described as a step toward substantially resolving the overall litigation landscape.