Reckitt, Abbott win key rulings in NEC lawsuits over infant formula safety

USA – Reckitt Benckiser’s Mead Johnson Nutrition unit and Abbott Laboratories recently received favorable rulings in a Missouri court over allegations that their specialized infant formulas caused necrotizing enterocolitis (NEC) in premature babies. 

The case, filed by the Whitfield family, was one of many ongoing NEC-related lawsuits targeting the companies. 

The disease, a severe gut condition, primarily affects premature infants and has been a point of contention as plaintiffs argue that certain infant formulas increase the risk of NEC. 

In response, both companies maintain that no conclusive scientific link exists between their formulas and the disease, positioning these products as essential for premature infants when human milk is unavailable or supplementation is necessary​

The recent Missouri ruling, reported by legal news outlet Law360, provides a potential precedent in favor of the companies, especially following earlier losses. 

Mead Johnson was previously ordered to pay US$60 million in March 2024 in damages to Jasmine Watson, whose baby allegedly suffered due to the Enfamil Premature 24 formula. Meanwhile, Abbott faced a much larger penalty in July, with a US$95 million award in compensatory damages and an additional US$400 million in punitive damages in a separate NEC case involving another family, who argued that their child sustained irreversible brain damage linked to the formula​.

Following the recent verdict, Reckitt issued a statement asserting that it aligns with “the scientific consensus that there is no established causal link” between specialized formulas and NEC. 

Abbott similarly emphasized that the products in question are considered safe by the medical community and regulatory bodies, underscoring their importance in providing life-saving nutrition to premature babies who cannot exclusively rely on human milk. 

Reckitt expressed that the court ruling highlights the lack of scientific support for the plaintiff’s claims and reaffirms their commitment to defending against all remaining NEC-related lawsuits​.

This verdict represents the companies’ first court victory amid a wave of similar cases, yet the ongoing legal challenges could still weigh on their finances. 

Barclays analysts estimate that there are hundreds of similar NEC lawsuits against Mead Johnson and Abbott, with damages sought amounting to as much as US$6 billion. 

Analysts speculate that Reckitt may attempt to settle these cases, potentially agreeing to pay about US$1 billion by 2026 to avoid further court losses and attract more risk-averse investors.

The case underscores ongoing scrutiny over infant formula safety, with Reckitt initiating a strategic review of its nutrition division housing Mead Johnson. 

For investors, the outcome could provide a renewed sense of confidence as the company seeks to stabilize its reputation and financial standing amidst ongoing legal pressures. 

Additionally, industry observers point to the need for further research to clarify any potential link between NEC and specialized formulas, which could shape future regulatory and medical guidance for pre-term infant nutrition.

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