Reckitt unsure how many cases have been filed over Enfamil: report

Reckitt Benckiser (OTCPK:RBGPF) said Monday that many cases had been filed against the company but it wasn’t sure exactly how many related to the safety and marketing of its Enfamil baby formula for premature infants, according to Reuters.

The remarks came in the wake of a jury verdict by an Illinois state court last Thursday that found the company had not adequately warned consumers about the risk of babies ingesting the product developing an intestinal disorder known as necrotizing enterocolitis, or NEC, which can be fatal.

The case was filed by a mother whose baby died of NEC after being fed Enfamil, which is marketed by Reckitt’s Mead Johnson unit. The jury awarded the mother $60M in damages.

Reckitt said it intends to appeal the verdict. It added that while new cases will be filed against the company it expects some to be dismissed or withdrawn in the preliminary stages, according to a Reuters report.

Shares of Reckitt closed 16% lower Friday following news of the verdict.

The verdict was the first of hundreds of cases that have been filed against Mead Johnson and fellow infant formula maker Abbott (NYSE:ABT). Over 400 cases involving NEC have been filed in the Chicago federal court, with others pending in state courts, Reuters reported Friday.

Both Abbott and Mead Johnson are based in the Chicago area. Mead Johnson’s parent company, Reckitt Benckiser, is headquartered in the U.K.

Baby formula maker Perrigo (PRGO) is not expected to be pulled into the litigation as none of its products are marketed for premature infants, according to an analyst note by CG Capital released last week.