An appeals court in Missouri upheld a $495 million verdict against Abbott Laboratories in a case involving whether its formula for premature infants caused a girl to develop the intestinal disease necrotizing enterocolitis (NEC). It was the first trial against the company of similar claims pending in courts nationwide that now number over 1,700.
The July 2024 verdict came after a three-week trial in St. Louis over allegations that a girl was given Abbott’s formula for premature infants after she was born at 26 weeks gestation, causing her to develop NEC. She underwent extensive surgery due to the illness and continues to suffer from long-term health issues.
The jury awarded $95 million in compensatory damages and $400 million in punitive damages.
In its appeal, Abbott argued that the plaintiff failed to show that the formula caused her daughter’s NEC, failed to show that Abbott’s design of the formula was negligent and that the punitive damages were “grossly excessive.”
The appellate court disagreed with Abbott. “While we recognize an excessive award fails to serve a legitimate purpose and unjustly deprives property, we are equally cognizant that the purpose of punitive damages is to deter egregious conduct,” the court wrote. “Applying these factors, we find Abbott’s conduct significantly reprehensible.”
The appellate court also wrote that the “jury found Abbott’s preterm formula caused substantial, extensive, permanent physical harm to Infant who will require comprehensive daily care for the remainder of her lifetime. Further, Abbott specifically designed its preterm formula for the population exposed to the most risk and yet failed to mitigate any danger by warning the consumer or actively changing the ingredient profile. Lastly, the product is still in the market without an NEC warning.”
The first federal bellwether trial in the infant formula NEC MDL is scheduled to begin on July 6, and the second is due to start on August 10. The trials represent nearly 800 federal cases brought by families who say Similac and Enfamil manufacturers knew, or should have known, that cow’s milk-based formula dramatically increases the risk of NEC in premature infants but did not warn consumers.