Abbott, creator of a special formula for infants born prematurely, was found by a jury to have caused the development of a dangerous bowel disease in one girl from Illinois. As a result, Abbott was ordered to pay $495 million in damages. This judgment, coming from a trial in Missouri, is unlikely to be the last of Abbott’s problems. There are numerous trials ongoing across the country involving Abbott’s formula.
The jury awarded the amount to Margo Gill, who brought the suit alleging that Abbott failed to disclose that its formula could potentially cause necrotizing enterocolitis (NEC). As a result of this petition, the jury subsequently awarded her $95 million in compensation. The other $400 million were awarded as punitive damages. The judgment in the trial was not decided unanimously, having the support of 9 of the 12 jurors that sat on the trial. This was exactly the 3/4 majority needed by the prosecution to obtain a verdict.
Gill’s lawyer had this to say about the trial: “Companies need to be honest about their products, the good and the bad.” She went on to say that companies like Abbott had a duty to inform prospective users’ parents about the risk involved in using a baby formula. In response, Abbott said it did not agree with the decision reached by the court and would attempt to have it overturned on appeal. A spokesperson for the company went on to say that cases like these represent an issue as formulas like Abbott’s are a unique product intended for premature infants and do not have alternatives in the market.
The disease at the root of this case, NEC, leads to bowel tissue death. Premature infants are most susceptible to it, with a recorded fatality rate anywhere between 15% and 40%, according to research. Margo Gill’s daughter Robynn became afflicted with NEC after she was given the formula while she was in intensive care. Despite surviving the ailment, she suffered neurological damage and will require long-term care. While Margo claimed that the formula was responsible for her daughter’s condition, Abbott continues to argue that Robynn’s present situation can be attributed to trauma at birth that deprived her of oxygen. They contend that while maternal milk lowers the risk of NEC, their products are essential in certain instances for prematurely delivered babies.
This lawsuit is one of many recent lawsuits involving either Abbott or fellow formula maker Reckitt Benckiser. The lawsuits, some of which are ongoing or being appealed, claim that formula makers did not inform buyers of the increased risk of NEC when using these products compared with other forms of formulas derived from mother’s milk. It is important to note that the subject of these lawsuits are formulas specifically intended for emergency situations, not the ones sold in stores and markets.
The lawsuit involving Reckitt ended in another jury verdict of $60 million in March, which caused the company’s share price to fall by 15%. Other lawsuits await decisions in both federal and state courts.
