Abbott Agrees To $670 Mln Settlement In Preterm Infant Formula Litigation
(RTTNews) - Abbott Laboratories (ABT), a diversified healthcare company, on Thursday entered into agreements to resolve a portion of litigation involving its speciality formulas for preterm infants for approximately $670 million.
The agreements resolve the Gill case and claims involving approximately 2,000 additional individuals who alleged that Abbott's preterm infant formulas caused or contributed to cases of necrotizing enterocolitis, or NEC, a serious intestinal disease affecting premature infants.
The agreements also resolve the Gill case, in which a jury awarded $495 million in 2024, which Abbott had appealed.
The agreements contain no admission of liability by Abbott and continue to maintain that its products are safe.
Following the settlements, approximately 1,700 lawsuits involving claims on behalf of about 12,700 infants remain pending in federal and state courts.
ABT closed Thursday at $114.14, down 0.25%. In the overnight market, the stock is trading down 0.11% at $114.01.
