Abbott to Pay $670 Million to Settle About 2,000 NEC Formula Cases
On August 20, 2026, Abbott Laboratories agreed to pay $670 million to resolve roughly 2,000 preterm infant formula claims tied to necrotizing enterocolitis. It is a partial inventory settlement covering the clients of three plaintiff firms, not a global resolution of the MDL, and Abbott admitted no liability.
What we know
- The amount
- $670 million, to settle about 2,000 NEC cases. Announced August 20, 2026.
- Who it covers
- Clients of three plaintiff firms (TorHoerman Law, the Holland Law Firm, and Stranch, Jennings & Garvey), across federal and state court.
- What kind of deal
- A partial, inventory settlement. It is not a global settlement of MDL-3026, and there is no court-approved claims program.
- No admission
- Abbott did not admit liability and continues to dispute the causation science.
- How it fits
- Separate from the confidential settlement Abbott reached in the $495 million Gill verdict on August 17, 2026, and separate from Mead Johnson, which won a defense verdict in Inman on August 31.
What's still unknown
- Per-case amounts
- Not disclosed. An inventory settlement is a lump sum allocated among claimants through a private process; we do not publish projected per-case values.
- How many claims remain
- The deal covers about 2,000 cases. Many more NEC claims across the federal MDL and the state courts are not part of it.
- Whether a global deal follows
- None has been announced. Abbott is resolving parts of its docket rather than the whole litigation.
- Whether Mead Johnson settles
- No Mead Johnson settlement has been reported. It is currently trying, and winning, cases.
Key Takeaways
- Abbott agreed to pay $670 million to settle about 2,000 NEC formula cases, announced August 20, 2026
- It is a partial, inventory settlement covering three plaintiff firms' clients, not a global MDL-3026 resolution
- Abbott admitted no liability and continues to dispute the causation science
- It is distinct from the confidential Gill $495 million settlement (August 17) and does not involve Mead Johnson
- There is still no global NEC settlement and no court-approved program that pays claims on a schedule
What an inventory settlement is
An inventory settlement resolves the cases held by a particular firm or group of firms, rather than every claim in the litigation. Abbott's agreement, reported on August 20, 2026, covers roughly 2,000 NEC cases handled by TorHoerman Law, the Holland Law Firm, and Stranch, Jennings & Garvey. The firms and Abbott agree on a total figure, here $670 million, and the claimants within those inventories are paid through an allocation process the parties design. It is not a class action, there is no court-approved claims program, and it does not set terms for anyone whose case is outside those firms' inventories.
How Abbott got here
Abbott has faced the hardest verdicts in the NEC litigation. A St. Louis jury awarded $495 million in Gill v. Abbott, a verdict Abbott resolved on confidential terms in mid-August 2026 to end its appeal, and a Cook County jury awarded $70 million to four families in April. Against that backdrop, settling a large block of cases for a fixed sum lets Abbott cap its exposure on part of the docket without conceding the causation question, which it continues to dispute. Abbott admitted no liability in the settlement.
What it means, and does not mean, for families
For families whose cases are inside the three firms' inventories, the settlement is the mechanism that will resolve their claims, on terms that are not public. For everyone else, little changes directly. There is still no global NEC settlement, no court-approved program that pays out on a schedule, and no set value for an individual claim. The litigation now has two defendants on different paths: Abbott is settling parts of its inventory, while Mead Johnson just won the first federal bellwether and has no adverse jury verdict. Anyone with a potential claim should confirm which manufacturer's product was used, gather the medical records, and speak with a licensed attorney, because deadlines vary by state and can bar a claim regardless of its merits.
Full NEC formula background, verdicts & appeals
For the complete overview, the verdict and appeal tracker, and how the federal and state cases differ, visit the case hub.
Sources
- • Bloomberg, "Abbott Will Pay $670 Million to End 2,000 Infant Formula Claims" (August 20, 2026).
- • Reuters, via Yahoo Finance, "Abbott to pay $670 million to settle preterm formula lawsuits" (August 20, 2026).
- • Claims Journal, "Abbott to Pay $670 Million to Settle Some Preterm Infant Formula Cases" (August 21, 2026).
- • Judicial Panel on Multidistrict Litigation: Pending MDL Dockets by Actions Pending (September 1, 2026).
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Every case is unique, and results depend on the specific facts and circumstances involved. Past settlement amounts and case outcomes do not guarantee similar results in your case. If you believe you have a legal claim, you should consult with a licensed attorney in your jurisdiction who can evaluate your specific situation.