ABT · 8-K · 20260820PR099247

Litigation and Legal Risk

ABBOTT LABORATORIES · 2026-08-20 · Importance 56 · Surprise 58 · In source text

Abbott agreed to resolve the Gill case and NEC claims involving approximately 2,000 additional individuals for an aggregate amount of approximately $670 million, avoiding payment of roughly $600 million for the Gill judgment plus accrued interest. The agreements cover disputed claims without admitting liability and follow favorable 2026 rulings, including the Seventh Circuit’s affirmation of Abbott’s federal MDL bellwether judgment and Florida and Illinois decisions applying the learned intermediary doctrine. After the agreements, approximately 1,700 lawsuits remained pending in federal and state courts involving claims on behalf of roughly 12,700 infants, creating continuing litigation and potential access-to-supply risks for Abbott’s preterm-formula business.

Key facts

• Abbott entered into agreements to resolve the Gill case and NEC claims asserted on behalf of approximately 2,000 additional infants for an aggregate amount of approximately $670 million. source
• In July 2024, a St. Louis jury awarded the plaintiff in the Gill case $495 million in damages. source
• In July 2026, the U.S. Court of Appeals for the Seventh Circuit affirmed a pretrial judgment for Abbott in the first federal MDL bellwether case involving the company's preterm infant formulas. source
• In March 2026, a Florida state court, applying the learned intermediary doctrine, dismissed claims involving preterm infant formula. source
• Abbott appealed the Gill verdict to the Missouri Court of Appeals in December 2024, but the appeal was denied. source
• Abbott would have paid approximately $600 million representing the Gill judgment plus accrued interest to date if it had continued to appeal or paid the judgment. source

Impact estimates