A federal jury in Chicago ruled on April 9, 2026 that Abbott Laboratories must pay $53 million in compensatory damages to four mothers whose premature infants suffered necrotizing enterocolitis (NEC) after receiving the company’s Similac Special Care and Similac NeoSure formulas. The jury has not yet decided on punitive damages, and a second hearing is scheduled for April 10 to determine that portion of the award.
The four plaintiffs, whose cases were consolidated for this trial, allege that the formulas increased the risk of NEC in preterm infants. Abbott maintains that its products are safe and necessary when breast milk is unavailable, and the company has stated it will appeal the verdict.
This judgment follows a series of adverse rulings against Abbott, including a $495 million award in Missouri in July 2024 and a $60 million award in Illinois in March 2025. Across the United States, the company faces more than 1,700 NEC lawsuits and 782 cases in the Northern District of Illinois MDL, underscoring the breadth of its legal exposure.
The $53 million compensatory award will be recorded as a direct expense in Abbott’s financial statements. While punitive damages remain undetermined, the potential for additional liability could materially affect the company’s Nutrition segment, which reported an 8.9% decline in worldwide sales on a reported basis in Q4 2025 and a 9.1% organic decline. Abbott expects a recovery in the second half of 2026 after implementing pricing and promotion initiatives.
In its Q4 2025 earnings release, CEO Robert B. Ford highlighted strong growth prospects and a robust product pipeline. The new verdict introduces a significant headwind that may alter the company’s outlook and could influence future guidance on revenue and profitability for the Nutrition business.
Analysts have noted that the $495 million verdict in 2024 caused Abbott to lose roughly $8 billion in market value, and the current judgment is likely to reinforce concerns about the company’s litigation risk. The pending punitive damages and the possibility of further appeals add uncertainty to Abbott’s financial trajectory.
The verdict illustrates the ongoing challenge Abbott faces in balancing the need to provide life‑saving nutrition for preterm infants with the legal and reputational risks associated with NEC claims. The company’s decision to appeal and the potential for additional damages will be closely watched by investors and regulators alike.
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