Abbott Reaches $670M Settlement Over Preterm Formula Litigation

Abbott announced settlements with three law firms to resolve Gill v. Abbott and NEC-related claims involving about 2,000 infants for roughly $670 million, a move framed as a compromise without admission of liability. The deal follows a 2024 jury verdict of $495 million and its 2026 affirmation, and aims to de-risk Abbott's litigation while leaving thousands of remaining NEC-related lawsuits unresolved. Medical authorities continue to stress that Abbott's preterm formulas are safe and essential for at-risk infants, underscoring ongoing tension between courtroom disputes and clinical practice. Abbott’s shares have been rated Outperform by TipRanks AI Analyst, which cites solid fundamentals and improving performance but notes a high valuation and debt as concerns. Regulatory and corporate filings reveal continued litigation activity, with an 8-K noting the settlement and ongoing NEC lawsuits against Abbott and its peers in the formula market. Reuters reports about 1,000 similar lawsuits exist, with major activity in Illinois federal court and bellwether trials underway, while medical guidance emphasizes breast milk as a key protective factor against NEC.