Abbott Shares Fall After $495 Million Payout Ordered in Baby Formula Lawsuit
Shares of Abbott Laboratories (ABT) came under pressure Monday after a jury in St. Louis late Friday ordered the company to pay $495 million in compensation and damages in a lawsuit over the company’s specialized formula for premature babies.
Illinois resident Margo Gill brought the case against Abbott, claiming that the firm failed to warn that the Similac Special Care 24 High Protein brand given to her daughter in the hospital could cause necrotizing enterocolitis, a potentially deadly disease of the bowels. The girl contracted the illness, and while she survived, she suffers from neurological damage that requires long-term care. The verdict calls for Abbott to pay $95 million in compensatory damages, and $400 million in punitive damages.
Read More at Microsoft Start