Abbott sets $670 million in infant formula deals

Abbott (ABT) has entered into agreements totaling approximately $670 million to resolve the Gill case and claims involving about 2,000 other individuals related to its specialty formulas for preterm infants. The company disclosed the arrangements in an August 20, 2026 announcement issued from Abbott Park, Illinois. The agreements were reached with three law firms and are intended to settle a significant subset of litigation tied to allegations of necrotizing enterocolitis, or NEC, in preterm infants.

The Gill case, along with the additional claims covered by these agreements, centers on the use of Abbott’s specialty preterm infant formulas. By moving to settle this group of cases in a single aggregate arrangement, Abbott is seeking to substantially narrow the scope of pending disputes connected to these products.

Abbott stated that the agreements represent a compromise of disputed claims rather than a finding or admission of fault. The company emphasized that the settlements are not an admission of liability regarding the safety or performance of its specialty formulas for preterm infants. The $670 million figure reflects the aggregated value of resolving the Gill case together with approximately 2,000 related claims.

In its statement, Abbott reiterated that it stands by the safety of its preterm infant nutrition products and highlighted what it described as their essential role in helping the medical community care for preterm infants. The company framed the agreements as a pragmatic step to resolve ongoing disputes while maintaining its position on product safety.

Despite the new agreements, Abbott reported that about 1,700 lawsuits remain pending in federal and state courts. These cases involve claims on behalf of roughly 12,700 individual infants. This broader population of claimants includes situations where multiple manufacturers were named, as well as instances of overlapping and disputed claims.

Abbott said the remaining group includes claims on behalf of individuals who named both Abbott and Mead Johnson without specifying which manufacturer’s formula was used. It also includes claims for individuals diagnosed with NEC before receiving any formula, those never diagnosed with NEC, and individuals who appear in multiple lawsuits across different jurisdictions.

The company indicated it is continuing efforts to identify and eliminate overlapping, miscategorized, or otherwise disputed claims within this population. This ongoing process is part of Abbott’s broader approach to manage and resolve the remaining infant formula litigation following the $670 million settlement agreements.