Abbott Laboratories and Reckitt Benckiser recently secured a legal victory as a jury found they did not conceal risks associated with their premature-infant formulas linked to necrotizing enterocolitis (NEC). This marks the companies’ first success in a series of over 1,000 lawsuits concerning the safety of these products, despite prior substantial verdicts against them earlier this year. The jury’s quick deliberation and decision could significantly impact future liabilities estimated between $500 million to $1 billion, boosting investor confidence reflected in a rise in both companies’ stock prices. The outcome reinforces the argument that these formulas have a long-standing safety record, countering claims from families affected by NEC.
