Abbott Laboratories has agreed to pay $670 million to settle claims involving about 2,000 people who alleged that its specialized preterm infant formulas contributed to necrotizing enterocolitis, a serious bowel disease affecting premature infants. The settlement also resolves Abbott's appeal of a $495 million verdict involving an Illinois mother, after that judgment was upheld by a Missouri appeals court. Abbott did not admit liability and continues to maintain that its products are safe. The company says claims from as many as 12,700 people remain, although that figure includes duplicate and unsupported claims as well as cases where it is unclear which manufacturer's formula was used. More than 825 federal cases are consolidated in Chicago, with additional cases pending in state courts.
Abbott LaboratoriesAbbott pays $670 million to settle claims over preterm infant formulas linked to necrotizing enterocolitis, with more claims pending.
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