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Abbott Laboratories to Pay $670 Million to Settle Cases, Claims over Its Formula for Premature Babies

The deal resolves claims from about 2,000 plaintiffs and includes a $495 million verdict after an appeals court upheld the judgment.

  • On Thursday, Abbott Laboratories agreed to pay $670 million to resolve the Gill case and claims involving approximately 2,000 individuals alleging its preterm infant formulas cause necrotizing enterocolitis.
  • Abbott maintains the safety of its specialty formulas, stating the settlement is not an admission of liability and that these products remain essential for preterm infants lacking access to human milk.
  • The American Academy of Pediatrics maintains preterm infant formula is "an indispensable component of neonatal medicine," arguing that feeding decisions should be made by clinical care teams, not in courtrooms.
  • Despite this settlement, Abbott continues to face approximately 1,700 lawsuits nationwide involving claims on behalf of 12,700 infants, though recent court rulings have favored preterm formula manufacturers.
  • While the exact cause of necrotizing enterocolitis remains unclear, Abbott continues to work identifying and eliminating invalid claims from individuals never diagnosed with the disease or appearing in multiple jurisdictions.
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Globo broke the news in Rio de Janeiro, Brazil on Thursday, August 20, 2026.
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