Abbott Laboratories filed a Form 8-K with the U.S. Securities and Exchange Commission on August 20, 2026, disclosing a settlement of a portion of its ongoing litigation involving specialty formulas for preterm infants, including resolution of the Gill verdict and claims on behalf of approximately 2,000 additional infants.

Key Highlights

  • Settlement amount: Abbott entered into agreements to resolve the Gill lawsuit and NEC claims on behalf of approximately 2,000 additional infants for an aggregate amount of approximately $670 million.
  • Gill verdict background: A Missouri state court jury awarded plaintiff Gill $495 million in damages in July 2024; the Missouri Court of Appeals affirmed that verdict in May 2026.
  • Alternative cost avoided: Rather than continuing to appeal or paying approximately $600 million representing the Gill judgment plus accrued interest, Abbott chose to settle.
  • No admission of liability: The filing states the agreements "are a compromise of disputed claims and not in any way an admission of liability."
  • Remaining litigation: Following these agreements, approximately 1,700 lawsuits involving claims on behalf of approximately 12,700 individual infants remain pending in federal and state courts.
  • Signed by: Philip P. Boudreau, Executive Vice President, Finance and Chief Financial Officer.

Abbott Resolves Gill NEC Verdict and Additional Claims for Approximately $670 Million

According to the filing, Abbott Laboratories (NYSE:ABT) disclosed on August 20, 2026, that it had entered into settlement agreements covering the Gill lawsuit and NEC claims asserted on behalf of approximately 2,000 additional infants. The aggregate settlement amount is approximately $670 million. The filing notes that rather than continuing to appeal or paying approximately $600 million, which represented the Gill judgment plus accrued interest to date, Abbott opted to resolve these claims. The company characterized the agreements as "a constructive step toward substantially resolving the overall litigation."

As described in the filing, the Gill case originated as a Missouri state court trial in July 2024, in which a jury awarded $495 million in damages. Abbott appealed to the Missouri Court of Appeals in December 2024, and that court affirmed the verdict in May 2026. The filing notes that the settlements are "a compromise of disputed claims and not in any way an admission of liability," and that Abbott "remains confident in the safety of these products and the science supporting them."

The filing further reports that approximately 1,700 lawsuits involving claims on behalf of approximately 12,700 individual infants remain pending in federal and state courts following these agreements. The filing notes that this population includes claims involving individuals who named both Abbott and Mead Johnson as defendants without identifying which manufacturer's formula was administered, who were diagnosed with NEC before receiving any formula, who were never diagnosed with NEC, and who appear in multiple lawsuits in different jurisdictions. According to the filing, Abbott "continues to work to identify and eliminate such claims and others like them."

What Was Disclosed

Abbott Laboratories disclosed a settlement of the Gill preterm infant NEC lawsuit and claims on behalf of approximately 2,000 additional infants for approximately $670 million, while noting approximately 1,700 lawsuits on behalf of approximately 12,700 infants remain pending.