Abbott Jury Awards at Least $53 Million in Infant-Formula Trial

Abbott Laboratories said it faces a jury award of at least $53 million over claims by four mothers that the company hid risks its premature-infant formula can cause a bowel disease which creates serious health issues for frail babies.

Jurors in state court in Chicago on Thursday found Abbott knew premature babies could develop necrotizing enterocolitis, or NEC, by ingesting the company’s cow-milk-based formula, but continued to market the product to hospital intensive-care units. After awarding the mothers compensation for their losses, the jury will convene Friday to determine whether to impose punitive damages on Abbott.

“We respectfully but strongly disagree with this verdict and will appeal, as it is out of step with the overwhelming consensus of the medical community and regulators that these preterm products are safe, they are necessary and there is no reliable scientific evidence that they cause NEC,” the company said in a statement, adding that four similar suits have been dismissed.

It’s the second trial loss for Abbott Park, Illinois-based Abbott in the litigation targeting products such as Similac Special Care and Similac NeoSure and may open the door to more multi-plaintiff trials. The company faces more than 1,700 lawsuits in federal and state courts, with potentially billions of dollars at stake.

Photo: Photographer: Bing Guan/Bloomberg