ABT · News · 20260820N
Infant Formula Litigation
ABBOTT LABORATORIES · 2026-08-20 · Importance 46 · Surprise 42 · In source text
Abbott agreed to pay approximately $670 million to resolve the Gill case and claims from about 2,000 individuals involving specialty formulas for premature infants. The settlement follows a Missouri jury verdict of approximately $495 million and includes Abbott dropping its appeal of that judgment. Approximately 1,700 additional lawsuits involving about 12,700 individual infants remain pending, while Abbott maintains that the settlement is not an admission of liability and that its products are safe.
Key facts
- Abbott has reached agreements with three law firms to resolve the Gill case and claims from approximately 2,000 individuals totaling around $670 million. source
- Abbott agreed to a $670 million settlement to resolve legal claims by about 2,000 people alleging harms relating to the company's specialty formulas for preterm infants. source
- Abbott will pay $670 million to end approximately 2,000 infant formula claims, while asserting it is not admitting liability and that about 1,700 additional lawsuits remain pending. source
- The settlement resolves the Gill verdict and around 2,000 related preterm infant formula claims for approximately $670 million. source
- Abbott dropped an appeal against a $495 million judgment as part of a settlement covering some preterm infant formula cases. source
- A Missouri jury previously ordered Abbott to pay $495 million in the Gill lawsuit related to alleged failure to warn about increased NEC risk from its preterm infant formula. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | committed | -2.4% | Abbott agreed to a $670 million settlement to resolve legal claims by about 2,000 people alleging harms relating to the company's… |
| liability | negative | committed | -0.5% | Abbott agreed to a $670 million settlement to resolve legal claims by about 2,000 people alleging harms relating to the company's… |