Abbott to Pay $670 Million to Resolve Some Infant Formula NEC Lawsuits

Formula manufacturer Abbott Laboratories has agreed to pay approximately $670 million to resolve claims from about 2,000 people who allege that its specialized formulas for premature infants contributed to necrotizing enterocolitis (NEC), a serious intestinal disease that primarily affects premature babies. The settlement, reached with three law firms representing the claimants, resolves a portion of the ongoing litigation over Abbott’s preterm infant formula products. Abbott has not admitted liability and continues to deny allegations that its formulas cause NEC.

Overview of Abbott’s Infant Formula Settlement

Abbott announced the infant formula NEC settlement on August 20, 2026, as the company continues to face lawsuits alleging that certain preterm infants developed NEC after being fed its specialized formula products. According to Abbott’s filing with the U.S. Securities and Exchange Commission, the agreements resolve claims involving approximately 2,000 infants, as well as the lawsuit brought by Illinois mother Margo Gill, who previously won a $495 million jury verdict after alleging that Abbott’s preterm infant formula caused her daughter to develop NEC. The total cost of the agreements is approximately $670 million.

Abbott has not admitted liability as part of the settlement. The company said the agreement represents a compromise of disputed claims and that it continues to stand behind the safety of its preterm infant formula products. Approximately 1,700 infant formula NEC lawsuits remain pending in federal and state courts following the settlement agreement, according to Abbott.

Alleged Link Between Preterm Infant Formula and NEC

The lawsuits against Abbott generally allege that cow’s-milk-based formulas and fortifiers given to premature infants can increase the risk of developing NEC. Families have alleged that Abbott knew or should have known about this potential risk and failed to adequately warn parents and healthcare providers. Abbott disputes these allegations and maintains that scientific evidence does not establish that its preterm infant formulas cause NEC. The company has also emphasized that specialized formulas can provide important nutrition for premature infants when sufficient human milk is not available.

What Is Necrotizing Enterocolitis?

Necrotizing enterocolitis is a serious and potentially life-threatening gastrointestinal disease that primarily affects premature and low-birth-weight infants. NEC causes inflammation in the intestines and can damage or destroy intestinal tissue. Severe NEC can lead to serious complications and may require surgery. According to the National Institutes of Health, NEC has a mortality rate as high as 50%.

Prematurity itself is a major risk factor for NEC. Babies born prematurely have less-developed digestive and immune systems, which can make them particularly vulnerable to the disease. The baby formula products at the center of these lawsuits are designed specifically for premature infants and differ from standard infant formulas commonly used for full-term babies. These specialized products provide additional calories, protein, vitamins, minerals, and other nutrients that premature infants may need to support growth and development.

Abbott Agrees to End Appeal of $495 Million NEC Verdict

As part of the infant formula settlement, Abbot has also agreed to end its efforts to overturn the $495 million verdict originally awarded to Margo Gill in 2024. Gill alleged in her lawsuit that her premature daughter developed NEC after receiving Abbott’s Similac Special Care 24 formula while being treated in a neonatal intensive care unit. A St. Louis jury concluded that Abbott’s formula caused the child’s NEC and awarded Gill $95 million in compensatory damages and $400 million in punitive damages.

Abbott appealed the verdict, but the Missouri Court of Appeals upheld the judgment in May 2026. The company continued to challenge the decision before agreeing to end its appeal as part of the broader infant formula settlement announced last month. 

Abbott and Mead Johnson Face Baby Formula NEC Lawsuits

Abbott is not the only infant formula manufacturer facing claims involving NEC. Mead Johnson, a subsidiary of Reckitt and the manufacturer of Enfamil products, has also been named in lawsuits alleging that cow’s-milk-based products contributed to NEC in premature infants.

Hundreds of federal lawsuits involving Abbott and Mead Johnson have been centralized in multidistrict litigation in the U.S. District Court for the Northern District of Illinois. Multidistrict litigation, or MDL, allows lawsuits involving similar allegations and factual questions to be coordinated for pretrial proceedings while allowing each plaintiff to maintain an individual claim. Additional infant formula NEC lawsuits have been filed in state courts, including in Illinois, Missouri, and Pennsylvania. 

Infant Formula NEC Litigation Continues After Abbott Settlement

Abbott’s $670 million settlement resolves a substantial portion of the claims represented by the three law firms, but it does not end the broader litigation involving specialized preterm infant formula. Families across the country continue to allege that Abbott and other manufacturers failed to adequately warn about an alleged link between cow’s-milk-based preterm formula products and NEC. 

With approximately 1,700 lawsuits still pending, according to Abbott, the legal dispute over preterm infant formula and NEC is expected to continue in state and federal courts. Future proceedings will continue to address the scientific evidence surrounding the alleged association, the adequacy of product warnings, and manufacturers’ legal responsibilities.