A material partial settlement has been reached in the ongoing litigation over preterm infant formula and necrotizing enterocolitis (NEC), but thousands of claims involving Abbott Laboratories and Mead Johnson remain unresolved.
Abbott announced on August 20, 2026, that it has agreed to pay approximately $670 million to resolve the Gill v. Abbott Laboratories case and NEC claims involving about 2,000 additional infants.
The agreement marks a significant development in litigation that has unfolded in state and federal courts across the country over allegations involving cow’s milk-based formula products given to premature infants.
The Settlement Is Expected to Bring the $495 Million Gill Case to a Close
The settlement reportedly includes the closely watched Gill case, which resulted in a $495 million jury verdict against Abbott in St. Louis in 2024. The case involved a premature infant who developed NEC after receiving Abbott’s Similac preterm formula. The plaintiff alleged that Abbott failed to adequately warn of the potential risks of NEC associated with its product.
A Missouri appeals court upheld the judgment in May 2026. Abbott said that continuing to appeal or satisfying the judgment with accrued interest could have cost approximately $600 million. The company instead reached agreements resolving the Gill case and claims involving approximately 2,000 other infants for about $670 million.
Abbott continues to deny that its preterm infant formula causes NEC and has emphasized that the agreements are a compromise of disputed claims, not an admission of liability.
Thousands of NEC Claims Remain After the Settlement
The settlement doesn’t bring the broader NEC baby formula litigation to an end. Abbott says roughly 1,700 lawsuits remain pending in state and federal courts involving claims on behalf of approximately 12,700 individual infants. Lawsuits have been brought against Abbott and Mead Johnson, the makers of Similac and Enfamil preterm infant formula products.
Families pursuing these cases allege that cow’s milk-based products given to premature infants increased the risk of NEC and that manufacturers failed to provide adequate warnings. The manufacturers dispute those allegations.
The litigation has produced different results depending on the case and court, including plaintiff verdicts, defense verdicts, dismissals, appeals, and new trials.
Federal litigation also continues. As discussed in a previous article, the federal NEC litigation has reached an important stage, with individual cases moving to trial and potentially shaping how thousands of remaining claims proceed.
What the Abbott Settlement Means for Families With NEC Claims
The $670 million agreement is notable because of its size and the number of claims it resolves, but it shouldn’t be viewed as a global settlement of all NEC baby formula lawsuits. Most families still have pending claims, and the litigation against both Abbott and Mead Johnson continues to develop.
For families of premature infants who developed NEC after receiving cow’s milk-based formula, these developments may also raise questions about what the ongoing litigation means for their own potential claims.
At Childers, Schlueter & Smith, we represent families nationwide in NEC baby formula litigation and continue to closely follow developments in state and federal courts. Families can learn more about when parents should consider speaking with an NEC baby formula lawyer or contact our legal team with questions about a potential claim.
We’ll continue providing updates as significant developments occur in the NEC baby formula litigation.
