Defective Products, Abbott Laboratories, & $5.7 Billion

Defective products significantly threaten public safety, leading to numerous injuries throughout California each year. Foldenauer Law Group, we have witnessed the devastating impact such incidents can have on individuals and their families. Although we will dive into the specific situation surrounding Abbott Laboratories and Similac formula in a moment, we want to stress the importance of understanding what options are available for legal recourse when you are a victim of a defective product. It is a means of holding manufacturers accountable while allowing attorneys like us to advocate for consumer safety. 

The Consequences of Defective Products

The consequences of using a defective product can be severe or potentially fatal. A defective product may result from an ineffective design, a manufacturing issue, or a company’s failure to issue an appropriate warning about using the product safely. To better understand how and why this can happen, look at the story of Abbott Laboratories. It centers on contaminated Similac (baby) formula and speaks to the risks of using defective products. 

In 2022, it was discovered that several lots of Similar formula products were contaminated with the bacteria Cronobacter sakazakii. The significance of which should not be overlooked. It is a dangerous form of bacteria that can lead to severe illnesses such as sepsis, meningitis, and necrotizing enterocolitis (NEC), a life-threatening bowel infection. Tragically, four infants who consumed the formula became sick, and one passed away. 

Warnings & Manufacturing Errors

Similac covers a wide range of infant formula products that provide nutrition to full and preterm infants. Although you could purchase some of these products in stores, some were only available in hospitals. Similac was manufactured and sold by Abbott Laboratories Inc, and they were aware of evidence that showed a link between Similac and increased rates of NEC in premature infants.

The lawsuits against Abbott Laboratories directly resulted from their failure to warn people about the known risks they discovered with their product. Why did they forego their legal obligation to include any sort of warning? People have written about this at length, and there is speculation that the decision was made due to their competition with another formula named Enfamil. The negative consequences of issuing a warning outweighed their legal obligation to the public that used and consumed their products. 

The Aftermath 

The families impacted by this defective product filed lawsuits against Abbott Laboratories. Because of this, they reached a monumental settlement of $5.7 billion, one of the largest settlements in a product liability case. In addition to the compensation the impacted families received, the settlement included provisions for contributing money for research about Cronobacter sakazakii and NEC to prevent similar incidents in the future. 

Foldenauer Law Group

Consumers have the right to demand accountability from manufacturers, and defective product lawsuits are means to hold them to it. Foldenauer Law Group remains dedicated to advocating for the rights of consumers and personal injury victims to ensure their safety continues to be prioritized for all manufacturers. If you have been harmed because of a defective product, call our office at (619) 564-8877 to set up your free consultation.