World · Malaysia Bureau
Abbott to pay $670 million to settle preterm infant formula lawsuits
The pharmaceutical giant has agreed to a major settlement over allegations that its cow's milk-based formula products for preterm infants can cause necrotising enterocolitis, a serious bowel disease. The deal addresses hundreds of pending lawsuits across multiple jurisdictions.
LSN Malaysia ·
Abbott Laboratories has agreed to pay US$670 million to settle a significant portion of lawsuits alleging that its cow's milk-based infant formula products are linked to necrotising enterocolitis (NEC), a serious and potentially life-threatening bowel disease affecting premature infants.
The settlement comes as the company faces hundreds of claims from families who contend that Abbott's preterm infant formula caused their children to develop the inflammatory intestinal condition. NEC is a medical emergency that can lead to severe complications in vulnerable newborns, particularly those born prematurely or with low birth weight.
The pharmaceutical manufacturer has maintained that its products are safe and nutritionally appropriate for preterm infants. However, the settlement allows the company to resolve a substantial volume of pending litigation without admitting wrongdoing or liability in the matter.
The agreement represents one of several major product liability settlements in the global infant formula industry in recent years. Abbott's settlement demonstrates the company's effort to address accumulated legal exposure while maintaining its significant position in the specialised nutrition market for vulnerable infant populations across Asia-Pacific and other regions.
The specific terms of the settlement, including payment schedules and the scope of cases covered, may be subject to court approval and further legal processes in relevant jurisdictions.