ABT · News · 20260821N

Infant Formula Litigation

ABBOTT LABORATORIES · 2026-08-21 · Importance 53 · Surprise 60 · In source text

Abbott agreed to pay approximately $670 million to settle about 2,000 claims alleging that its specialty formulas for premature infants caused necrotizing enterocolitis (NEC). The settlement includes resolution of the Gill family case, which previously produced a judgment of approximately $495 million to $500 million. About 1,700 lawsuits involving approximately 12,700 infants remain pending, leaving aggregate infant-formula settlement exposure at roughly $1.165 billion according to third-party reporting. Abbott continues to dispute liability, maintains that its products are safe, and says the settlement is not an admission of wrongdoing.

Key facts

• Abbott reached a $670 million settlement to partially resolve litigation concerning alleged harms from its specialty formulas for preterm infants. source
• Benzinga reported Abbott reached a $670 million settlement with three law firms to resolve the Gill lawsuit and approximately 2,000 additional claims related to its premature infant formulas and necrotizing enterocolitis (NEC). source
• The settlement includes dropping an appeal against a $495 million judgment awarded to an Illinois mother. source
• Despite the settlement, Abbott said it still faces roughly 1,700 additional lawsuits covering 12,700 infants. source
• The $670 million settlement involves around 2,000 claimants. source
• Abbott maintains that major health organizations found no reliable scientific links between its formulas and NEC. source

Impact estimates