NEC Baby Formula Lawsuit Update — September 2026

August 20, 2026: Abbott agrees to a $670 million partial NEC settlement

In the most significant development in the litigation to date, Abbott Laboratories agreed to pay approximately $670 million to resolve the Gill case — the $495 million Missouri verdict that was upheld on appeal earlier this year — together with NEC claims brought on behalf of roughly 2,000 additional infants represented by three law firms.

The settlement is partial, not global. Abbott still faces approximately 1,700 lawsuits and up to 12,700 similar claims that are not covered by the agreement. Abbott characterizes the agreements as a compromise of disputed claims and not an admission of liability, and continues to state that it stands by the safety of its preterm infant formulas.

September 14, 2026: Abbott pays $385 million in a separate DOJ formula settlement

Abbott also agreed to pay $384,999,040 to resolve a U.S. Department of Justice investigation and lawsuit, along with claims by states, alleging that between 2018 and 2022 it caused false claims to be submitted to federal and state programs for powdered infant formula manufactured at its Sturgis, Michigan and Casa Grande, Arizona facilities in violation of safety requirements. That case relates to the 2022 Cronobacter sakazakii contamination and recall — it is a separate matter from the NEC litigation and does not resolve any NEC injury claims. Families should understand that the NEC lawsuits remain active and unresolved for everyone outside the August settlement group.

MDL 3026 continues to grow

The federal multidistrict litigation before Judge Rebecca Pallmeyer in the Northern District of Illinois remains active, with bellwether trials proceeding through the second half of 2026. The August settlement is widely viewed as a signal that manufacturers are beginning to price global resolution — increasing the importance of having a claim properly filed.

A partial settlement of this size is a strong signal about how defendants value NEC claims. Abbott chose to pay $670 million rather than continue litigating the Gill judgment and roughly 2,000 additional claims — a meaningful indicator of the pressure building toward a broader global settlement framework.

However, no global settlement exists yet, and there is no guarantee one will include families who have not filed. Historically in mass torts, only families with properly filed claims are positioned to participate when a global resolution is announced. Pennsylvania families with qualifying claims should be filed and in the litigation before any global framework takes shape.

The two-year Pennsylvania statute of limitations applies regardless of settlement progress. Families considering a claim should not wait for further settlement news to make contact — use the qualification checker or read the Pennsylvania guide for next steps.