Reckitt, a multinational consumer goods company, revealed on Monday that numerous lawsuits have been filed against baby formula manufacturers in general. However, the exact number directly associated with its subsidiary’s Enfamil product remains unclear.
The revelation follows a recent ruling by an Illinois jury, which ordered Reckitt’s subsidiary, Mead Johnson, to compensate $60 million to the mother of a premature infant who tragically died from an intestinal disease after consuming Enfamil baby formula.
The jury, sitting in an Illinois state court in St. Clair County, found Mead Johnson negligent, citing a failure to adequately warn consumers about the risks associated with necrotising enterocolitis (NEC). This severe condition, characterized by the death of bowel tissue, predominantly affects premature newborns, with a mortality rate ranging from 15% to 40%.
Traders expressed apprehension to Reuters last Friday, speculating that further legal actions might be initiated against Mead Johnson.
Following the news, Reckitt’s shares experienced their most substantial single-day decline since 1999, marking the company as the top decliner on London’s blue-chip FTSE 100 index.
Addressing concerns during a conference call regarding last week’s verdict, a Reckitt executive stated, “Case numbers will continue to fluctuate. New cases will be filed, and some will be dismissed. We need to ascertain our involvement in these litigations.”
Reckitt, renowned for owning brands such as Lysol, Dettol, and Strepsils, faces an uncertain future amidst mounting legal challenges surrounding its Enfamil baby formula.
