Abbott Laboratories 8-K

Summary

Abbott agreed to settle a portion of the litigation over its specialty formulas for preterm infants. The agreements resolve the Gill case and claims involving approximately 2,000 additional individuals, after an appellate court affirmed the Gill verdict. Abbott says the agreements are a compromise, not an admission of liability, and a step toward substantially resolving the litigation.

Key Figures

• Settlement: approximately $670M in aggregate for the Gill case and claims involving approximately 2,000 additional individuals; Abbott had faced paying approximately $600M for the Gill judgment plus accrued interest if it continued its appeal.
• The Gill jury award was $495M. After these agreements, approximately 1,700 lawsuits involving claims on behalf of approximately 12,700 infants remain pending. Abbott says the population includes duplicate claims and cases with disputed or unclear formula use or diagnoses.

Investor Takeaways

• The remaining lawsuits are the next litigation milestone to watch; their progress will indicate how much of the overall claims this settlement leaves unresolved.