Abbott, Reckitt Triumph in NEC Liability Case
Abbott, Reckitt Triumph in NEC Liability Case

Abbott, Reckitt Triumph in NEC Liability Case

News summary

Abbott Laboratories and Reckitt's Mead Johnson unit were cleared of liability in a lawsuit claiming their premature baby formulas caused a severe intestinal disease called necrotizing enterocolitis (NEC), which primarily affects premature infants. This verdict marked a significant win for both companies after previous losses led to hefty settlements. The decision followed a five-week trial in St. Louis, where the jury found no failure in warning about the risks associated with the formulas. Abbott's stock rose nearly 5% in response, and Reckitt shares increased more than 10%. Analysts suggest this victory may reduce Abbott's potential liability by $500 million to $1 billion. Despite the win, Abbott and Reckitt face around 1,000 similar lawsuits, raising concerns about the formulas' availability and the companies' market positions.

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