Consumer goods giant Reckitt is slated to face a U.S. courtroom showdown Tuesday as a bellwether trial begins in a class action lawsuit connected to its baby formula products. The litigation, consolidated in the U.S. District Court in Illinois, centers on allegations that one of Reckitt's subsidiaries, Mead Johnson, failed to adequately warn parents that its infant milk formula, Enfamil, could increase the risk of necrotizing enterocolitis (NEC).
NEC is a serious bowel condition that can be fatal in newborn and premature infants. Plaintiffs' attorneys argue that Reckitt denies the claims, maintaining that the science and medical consensus do not support the assertions that their products cause NEC. A Reckitt spokesman stated the company is confident in its position and looks forward to presenting its case, asserting that its preterm hospital nutrition products are recommended by neonatologists as part of the standard of care in neonatal intensive care units when clinically appropriate.
Reckitt's rival, Abbott Laboratories, faces similar allegations regarding its Similac formula and its alleged link to NEC. The lawsuits against both companies began appearing in 2022.
The legal challenges have had an impact on Reckitt's stock, with shares falling nearly 13% over the past five years amid investor concerns about potential financial liabilities.
Despite the ongoing litigation, Reckitt has seen some legal successes. Last month, a jury in Missouri rejected claims that Mead Johnson's formula was responsible for an infant's NEC. In June, an Illinois court overturned a $60 million verdict against the firm that had found it failed to warn parents about the potential risks of its products causing NEC.