Abbott Reaches $670 Million Partial Settlement in Preterm Formula Cases

August 21, 2026 at 01:56 AM2 min

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Abbott said Aug. 20 it reached a $670 million settlement to partially resolve litigation over its specialty formulas for preterm infants. The agreement covers about 2,000 claims, including a $495 million verdict that Abbott will no longer appeal. Abbott still faces claims from as many as 12,700 people related to its or Mead Johnson's formulas.

Key Facts

Abbott reached a $670 million settlement covering about 2,000 claims that its preterm formula caused necrotizing enterocolitis.
The settlement includes Abbott's agreement to drop its appeal of a $495 million verdict for an Illinois mother whose daughter developed NEC.
Abbott said it still faces claims from as many as 12,700 people related to its or Mead Johnson's formulas.
About 1,700 lawsuits have been filed against Abbott and Mead Johnson, a unit of Reckitt, over the formulas.
Necrotizing enterocolitis, which mostly affects premature newborns, has an estimated mortality rate above 20%.

Settlement Terms

Abbott said on Aug. 20 it reached a $670 million settlement with three law firms representing about 2,000 claimants. The settlement covers one Illinois mother who won a $495 million judgment in 2024 after a jury found Abbott's formula caused her daughter's necrotizing enterocolitis. Abbott agreed to end its appeal of that verdict, which was upheld by a Missouri appeals court in May 2026. Abbott did not admit liability and said it remains confident in the safety of its infant formula products.

Litigation Filings

Abbott, which makes Similac formulas, said about 1,700 lawsuits have been filed against it and Mead Johnson, a Reckitt unit that makes Enfamil formulas. Some lawsuits name both companies as defendants, and some are filed on behalf of multiple plaintiffs. Abbott said it still faces claims from as many as 12,700 people, a total it said includes duplicate filings and claims involving infants who developed NEC before receiving formula. Abbott said it is working to eliminate duplicate and unsupported claims.

Necrotizing Enterocolitis

Necrotizing enterocolitis, which mostly affects premature newborns, causes death of bowel tissue and has an estimated mortality rate above 20%. Abbott and Mead Johnson say their formulas do not cause the disease and that the benefits of breast milk have long been known to clinicians. A 2024 report by U.S. regulatory agencies and a National Institutes of Health-convened working group linked higher NEC rates to the absence of breast milk, rather than to formula use. The products at issue are cow's milk-based formula and fortifiers for hospital settings, not ordinary store-bought formula.