Abbott, Reckitt cleared of liability in latest preterm formula case

By Brendan Pierson

(Reuters) – Abbott and Reckitt unit Mead Johnson are not responsible for a young boy’s debilitating intestinal disease, a jury found on Thursday in a lawsuit accusing them of failing to warn of their premature baby formulas’ risks, a victory for the two companies following large losses in similar trials.

The verdict followed a five-week trial in St. Louis, Missouri state court in which lawyers for plaintiff Kaine Whitfield had urged jurors to award more than $6.2 billion.

The lawsuit, brought on Kaine’s behalf by his mother, Elizabeth Whitfield, alleged that the companies failed to warn that their specialized formulas used by newborn intensive care units in hospitals could cause necrotizing enterocolitis, a disease that almost exclusively affects premature infants and has an estimated mortality rate of more than 20%.

Kaine, now seven years old, was born prematurely at less than 28 weeks, weighing just over 1,000 grams or 2.2 pounds, and developed the disease after being fed formula at St. Louis Children’s Hospital. He had surgery for his illness and survived, but will have lifelong developmental and health problems as a result, according to the lawsuit.

Reuters watched the trial through Courtroom View Network.

The case is one of about 1,000 similar lawsuits around the country, which have raised alarm from doctors who say the litigation could threaten the formulas’ availability or affect medical decisions.

Abbott CEO Robert Ford (NYSE:) told investors in an Oct. 16 call that it would be “very difficult for any company to remain on the market with these products” in the face of “indefinite liability.” Reckitt in July said it was “considering options” for Mead Johnson, and CEO Kris Licht did not rule out a sale.

Abbott and Mead Johnson have said that, while mother’s and donated human milk protect against necrotizing enterocolitis, formula does not cause it. The companies have said that the benefits of human milk are widely known and incorporated into hospital feeding practices.

Two cases that went to trial earlier this year resulted in verdicts of $60 million against Mead and $495 million against Abbott.

Following those verdicts, U.S. regulatory agencies and a working group of scientists convened by the National Institutes of Health said current evidence does not support the hypothesis that formula causes necrotizing enterocolitis. Abbott and Mead were not allowed to present those statements to the jury in the latest trial.