Jury Clears Abbott and Mead Johnson in Infant Formula Suit

A jury found Abbott and Reckitt's unit Mead Johnson not responsible for a young boy's illness in a lawsuit alleging failure to warn about risks of their formulas. The verdict favoring the companies led to rising stock prices as it eased concerns about large payouts impacting their market standing.

Abbott and Reckitt's Mead Johnson were exonerated by a jury in a lawsuit claiming their formulas caused a debilitating disease in a young boy. The decision represents a significant win for the companies, coming after costly verdicts in similar cases.

The ruling prompted an 11.7% surge in Reckitt's shares and boosted Abbott's pre-market trading by nearly 5%, with analysts suggesting the verdict might lower the perceived financial risk for both companies.

The lawsuit was part of about 1,000 similar claims nationwide and raised concerns about their impact on the availability of specialized formulas, as Abbott emphasized that formula does not cause the disease alleged, and regulatory evidence supported their products' safety.

(With inputs from agencies.)