Abbott Laboratories (NYSE:ABT) on Friday reached a significant agreement with three law firms to resolve the Gill lawsuit alongside claims from roughly 2,000 individuals.
These disputes center around the company’s specialty infant formulas for premature babies and allegations connecting the products to necrotizing enterocolitis (NEC), a severe inflammatory intestinal disease affecting underdeveloped infants.
In July 2024, a St. Louis jury delivered a $495 million verdict against the health care company in the Gill trial.
After a Missouri Court of Appeals denied the resulting December 2024 appeal, the company faced approximately $600 million in damages and accrued interest.
Rather than pursuing further appeals, the manufacturer chose to settle the primary lawsuit and the additional 2,000 NEC claims for an aggregate amount of $670 million.
