A St. Louis jury has ordered Abbott Laboratories to pay $495 million in damages to a family who claimed the company’s baby formula caused necrotizing enterocolitis (NEC). The verdict issued on Friday is one of the first significant outcomes in a series of high-profile cases involving premature infant formulas and their alleged links to serious health complications.

Margo Gill filed a lawsuit on behalf of her daughter, Robynn Davis, who developed NEC after consuming Abbott’s Similac formula in a neonatal intensive care unit (NICU). The jury awarded the family $95 million in compensatory damages and $400 million in punitive damages.

Abbott strongly disputed the claims and said it plans to appeal, maintaining its baby formula is essential for feeding premature infants who cannot breastfeed.

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Baby Formula and NEC

Necrotizing enterocolitis (NEC) is a severe and potentially fatal bowel condition that primarily affects premature infants, causing significant damage to the intestines. Robynn Davis, who was fed Abbott’s formula in 2021, survived NEC but faces long-term neurological issues, according to the lawsuit filed on her behalf.

The lawsuit claimed Abbott failed to adequately warn about the risks of its cow’s milk-based based baby formula and NEC.

“Juries are awarding these large verdicts because they recognize the profound suffering these families endured due to NEC,” Sara Papantonio, a baby formula lawyer from the Levin Papantonio law firm, told Consumer Notice in an email. “Juries want to send a clear message that companies must be held accountable when their products harm the most vulnerable among us—our infants.”

Abbott’s defense argued that NEC can result from various factors, including the infant’s health and birth conditions. They argue that while mother’s milk is preferred, its formula is sometimes the only viable option for premature infants.

Baby Formula Lawsuits on the Rise

The significant verdict is part of a growing trend of Enfamil and Similac lawsuits against baby formula manufacturers.

Close to 1,000 lawsuits have been filed against Abbott and other companies, including Reckitt Benckiser, the producer of Enfamil. According to the most recent MDL statistics report, more than 500 of these cases are part of federal multidistrict litigation (MDL) in Illinois. The initial bellwether trial is scheduled for May 2025.

In March 2024, an Enfamil lawsuit against Reckitt Benckiser resulted in a $60 million jury verdict. Reckitt is appealing this decision, claiming the plaintiff based their case on unreliable evidence. These legal battles are reshaping the scrutiny and regulation of infant formula products.

The financial implications are significant. Reckitt’s share price fell sharply following the Abbott verdict, reflecting investor concerns about ongoing litigation. The company’s shares had already dropped by as much as 20% following the trial in March.

“Juries want to send a clear message that companies must be held accountable when their products harm the most vulnerable among us,” Papantonio said. “These decisions reflect the juries’ commitment to justice and the importance of protecting children’s health.”

Analysts predict Abbott and Reckitt may face substantial settlement costs.