Abbott Laboratories to pay $670 million to settle preterm infant formula lawsuits

Abbott Laboratories agreed to a $670 million settlement on August 20, 2026, to resolve approximately 2,000 claims alleging its preterm infant formula causes necrotizing enterocolitis (NEC), a deadly bowel disease. As part of the agreement, Abbott will drop its appeal of a $495 million verdict awarded to Illinois mother Margo Gill in 2024. Abbott does not admit liability and maintains its products are safe, even as it still faces up to 12,700 outstanding claims alongside co-defendant Mead Johnson.

Abbott preterm formula settlement

• ▪Abbott Laboratories agreed to a $670 million settlement on August 20, 2026, to partially resolve litigation over its specialty formulas for preterm infants
• ▪The $670 million settlement was agreed to by three law firms representing approximately 2,000 people with claims against Abbott Laboratories

Necrotizing enterocolitis disease

• ▪The products linked to necrotizing enterocolitis are cow's milk-based formula and products for fortifying mother's milk specially made for hospital settings, not ordinary store-bought formula
• ▪Necrotizing enterocolitis is a dangerous bowel disease that mostly affects premature newborns, causing the death of bowel tissue, and has an estimated mortality rate of more than 20%

Outstanding litigation claims

• ▪More than 825 federal cases regarding preterm infant formula have been consolidated before a judge in Chicago, while thousands of others remain pending in state courts
• ▪Abbott Laboratories still faces claims from up to 12,700 people across approximately 1,700 lawsuits filed in state and federal courts against Abbott and Mead Johnson

Product safety position

• ▪A 2024 report by U.S. regulatory agencies and a National Institutes of Health-convened working group stated that current evidence links higher necrotizing enterocolitis rates to the absence of breast milk rather than formula use
• ▪Abbott Laboratories did not admit liability in the August 20, 2026 settlement, stating it remains confident in the safety of its infant formula products
• ▪Abbott Laboratories and Mead Johnson stated that while breast milk protects against necrotizing enterocolitis, their formulas do not cause the disease

Prior jury verdict appeal

• ▪Abbott Laboratories stated that interest on the 2024 verdict would have entitled Margo Gill to about $600 million, prompting the company to settle rather than continue fighting the judgment
• ▪As part of the settlement, Abbott Laboratories agreed to drop its appeal of a $495 million jury verdict awarded in 2024 to Illinois mother Margo Gill

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