Similac Settlement Provides $670M Payout To Resolve 2,000 NEC Lawsuits

Abbott says the agreement will settle Similac lawsuits brought on behalf of about 2,000 infants diagnosed with NEC, while claims being pursued by approximately 12,700 additional infants remain pending.

Abbott Laboratories has reached a major settlement agreement to resolve a portion of the Similac NEC litigation involving premature infants who developed necrotizing enterocolitis (NEC) after receiving the company’s cow’s milk-based formula products.

The company announced this week that it will pay approximately $670 million to resolve one specific case that reached trial, together with claims brought on behalf of another 2,000 infants represented by specific law firms.

The claims are part of a large litigation being pursued against Abbott and its competitor Mead Johnson, involving lawsuits brought by families who allege cow’s milk-based formulas increase the risk of NEC for pre-term infants, indicating that the manufacturers should be held accountable for failing to warn consumers and the medical community about those risks.

Each Similac NEC lawsuit and Enfamil NEC lawsuit raises claims involving premature infants who developed the potentially life-threatening intestinal disease after being fed specialized formula products. NEC is a condition that occurs when harmful bacteria infiltrate the intestines, causing infection and necrosis. Preterm infants are particularly vulnerable due to their underdeveloped gastrointestinal systems.

Treatment for NEC can require large amounts of antibiotics and surgery to remove dead tissue and reroute the intestinal tract. Often, the newborns are left with life-long injuries and the need for medical monitoring before their lives are even really started. In many cases, the child does not survive.

Infant formula NEC lawsuits have been filed at both the federal and state level, with the federal claims consolidated into a multidistrict litigation (MDL) in the Northern District of Illinois before U.S. District Judge Rebecca R. Pallmeyer for coordinated discovery and pretrial proceedings. Numerous other claims are also filed in state courts in Missouri and Illinois.

Several state trials have already been held, with many ending in massive multi-million verdicts against the manufacturers. According to an Abbott Laboratories press release, the failed appeal of a 2024 $495 million verdict in one of these early trials led to the decision to settle a group of Similac cases.

Similac NEC Settlement

On August 20, Abbott issued a press release announcing the Similac lawsuit payouts, which will see the company turning over $670 million to settle the lawsuit being appealed and about 2,000 more.

Few details were released, but the lion’s share will likely go to Margo Gill, who won the $495 million verdict in July 2024. Gill alleged that her infant daughter suffered brain damage as a result of Similac-induced NEC.

Abbott appealed the verdict, but a Missouri appeals court upheld the decision in May. Abbott then filed an appeal to the Missouri state Supreme Court, but on August 18 the parties filed a joint motion (PDF) to vacate the judgment and remand the case back to a lower court to finalize a settlement.

“Rather than continuing to appeal or paying approximately $600 million, representing the Gill judgment plus accrued interest to date, Abbott entered into agreements to resolve the Gill case as well as necrotizing enterocolitis (NEC) claims asserted on behalf of approximately 2,000 additional infants for an aggregate amount of approximately $670 million.”

– Abbott Laboratories, Inc.

The additional lawsuits involve plaintiffs represented by three law firms, according to the release. There was no information on whether additional settlements were on the horizon, but Abbott claims that it still believes the products are safe, despite the agreement.

Abbott says that after the settlement, roughly 1,700 lawsuits will remain pending in federal and state courts, involving claims on behalf of approximately 12,700 infants against Abbott, Mead Johnson, or both manufacturers over their preterm infant formula products.

Infant Formula NEC Lawsuits

The settlement announcement comes as the first federal infant formula NEC bellwether trial is underway, involving claims brought by Alex Inman against Mead Johnson, the makers of Enfamil. He alleges his infant son, Daniel, died due to NEC complications after being fed the cow’s milk-based formula.

The trial over Inman’s claims will be followed by several additional federal trials if no settlement agreement is reached.

While none of these bellwether trial outcomes are binding on other cases, they are still being closely watched since they could help attorneys reach a future Enfamil or Similac infant formula settlement agreement.

To stay up to date on this litigation, sign up to receive infant formula necrotizing enterocolitis lawsuit updates sent directly to your inbox.