US Court Fines Abbott $500 Million for Allegedly Concealing Fatal Disease Risk of Infant Formula

New Delhi, July 29, 2024: A US court has ordered Abbott Laboratories to pay nearly $500 million for hiding the risk, allegedly associatedwith its premature-infant formula,which can cause a potentially fatal bowel disease. The order by the jury of the court comes after a mother has won the case against the company.

As per the state court in St. Louis, $95 million has to be paid as compensation to the family for its losses, while $400 million has to be paid as punitive damages.

Furthermore,Abbott Laboratories is not happy with the court’s judgment, calling it not to be unanimous. In this regard, a company statement reads, “We will pursue all avenues to have the erroneous decision overturned.”

The case was filed by a mother of a premature baby girl who consumed Abbott’s Similac Special Care 24 (A cow’s milk-based formula) and allegedly developed necrotizing enterocolitis, andultimately suffered brain damage afterwards.

It must be noted that the case is one among more than 1,000 such claims against Abbott and other formula makers.

We have known that the company knew for years that its cow’s milk-based formula causes necrotizing enterocolitis (NEC) in premature babies, however, the company has been keeping these potential factsunder the wraps, refusing to warn families and physicians against its use. In addition it to, Abbott Laboratoriesdidn’t mention the associated risks of the formula on its product label.

The company still disagrees after the court’s order and argues that the formula doesn’t cause NEC and that Gill’s baby had pre-existing health issues. A statement by the company says that there is no link between the infant formula and NEC and that there is no scientific evidence to prove it.

Earlier, in March, another court in Illinois had ordered a unit of Enfamil-formula maker Reckitt Benckiser Group Plc to pay $60 million to the family of a premature baby who lost her life after consuming the company’s cow milk-based product. Following this, the company’s shares observed a dip of 15%.