ABT · News · 20260825N

Infant Formula Litigation

ABBOTT LABORATORIES · 2026-08-25 · Importance 52 · Surprise 42 · In source text

Abbott agreed to pay $670 million to settle NEC claims brought by approximately 2,000 individuals involving preterm infant formula. The settlement also resolves a prior $495 million verdict, while Abbott continues to deny liability and maintains that its products are safe. Abbott separately agreed to an $88.5 million settlement of investor claims concerning alleged disclosures about the 2022 powdered infant formula recall and production halt at its Michigan plant. The investor settlement awaits preliminary approval from the U.S. District Court for the Northern District of Illinois, and thousands of additional claims remain outstanding.

Key facts

• Abbott Laboratories has agreed to pay $670 million to settle claims from approximately 2,000 individuals alleging that its preterm infant formulas caused necrotizing enterocolitis (NEC). source
• Abbott Laboratories has agreed to an $88.5 million settlement to resolve investor claims that the company misled them about the severity of a 2022 powdered infant formula recall and a production halt at its Michigan plant. source
• The $88.5 million investor settlement is currently awaiting preliminary approval from the US District Court for the Northern District of Illinois. source
• The $670 million settlement includes resolving a previous $495 million verdict against Abbott. source
• Abbott still faces thousands of additional claims related to its infant formulas despite the $670 million settlement. source
• Abbott Laboratories continues to deny liability and asserts its products are safe in connection with the preterm infant formula claims. source

Impact estimates