:max_bytes(150000):strip_icc():format(jpeg)/GettyImages-2163744615-a30e23493d17405ba83fb9047a993951.jpg "An Abbott Nutrition distribution center in Columbus, Ohio, US, on Sunday, July 28, 2024.")
Key Takeaways
- A jury in St. Louis ruled on Friday that Abbott Laboratories must pay $495 million in compensation and disfigures in a lawsuit involving the company’s premature infant formula.
- Abbott was sued by an Illinois woman whose daughter developed necrotizing enterocolitis after being given the formula in the hospital.
- The company has denied its product is unsafe.
- Abbott apportions fell as much as 5% in early trading Monday.
Shares of Abbott Laboratories (ABT) came under pressure Monday after a jury in St. Louis till Friday ordered the company to pay $495 million in compensation and damages in a lawsuit over the company’s specialized formula for too early babies.
Illinois resident Margo Gill brought the case against Abbott, claiming that the firm failed to give fair warning that the Similac Special Care 24 High Protein brand given to her daughter in the hospital could well-spring necrotizing enterocolitis, a potentially deadly disease of the bowels. The girl contracted the illness, and while she survived, she suffers from neurological hurt that requires long-term care. The verdict calls for Abbott to pay $95 million in compensatory damages, and $400 million in chastening damages.
Abbott has denied its formula is dangerous, with CEO Robert Ford saying in the company’s first quarter earnings order that “there are clinical studies that have repeatedly established that these products are safe.”
Investopedia reached out to both Abbott and the law compact of TorHoerman Law, which represented Gill, but neither responded.
The company and Britain’s Reckitt Benckiser, maker of Enfamil, are cladding hundreds of lawsuits relating to their infant formula.
Abbott shares were down 1.3% in recent truck, after falling as much as 5% in early trading.
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