Similac Lawsuit: What Abbott Agreed to Pay in 2026 — and Who It Covers
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Two Abbott announcements put the Similac lawsuit back in the news. On August 20, 2026 Abbott said it will pay about $670 million to settle NEC claims over its preterm formula — but only for the Gill case and roughly 2,000 infants represented by three law firms. On September 14, 2026 the Justice Department announced a separate $384,999,040 settlement over its Sturgis and Casa Grande plants, paid to governments, not families. Neither has a claim form.
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Reviewed by Leonard Goldberg, Editor · Last updated
What the Similac Lawsuits Allege
There are three different kinds of Similac case, and they should not be mixed up.
1. NEC (premature babies). Families allege that Abbott’s cow’s-milk-based preterm formula and human milk fortifier — the Similac line used in neonatal units — cause necrotizing enterocolitis (NEC), a serious intestinal disease, and that Abbott failed to warn about the risk. Abbott denies this and says there is “no reliable scientific evidence” that the products cause NEC. This is where the money is moving.
2. The 2022 recall. In February 2022 Abbott recalled Similac, Alimentum and EleCare powder made at its Sturgis, Michigan plant after Cronobacter and Salmonella findings. Families of sick infants sued individually.
3. The government case. A whistleblower suit, joined by the United States, alleged that Abbott billed WIC and Medicaid for Sturgis formula made in conditions that did not meet federal requirements. Abbott settled it in September 2026; the Justice Department says the claims are allegations only and there has been no determination of liability.
Case Details
NEC, federal: In re: Abbott Laboratories, et al., Preterm Infant Nutrition Products Liability Litigation, MDL No. 3026, U.S. District Court for the Northern District of Illinois, Judge Rebecca R. Pallmeyer. It covers Similac (Abbott) and Enfamil (Mead Johnson). As of October 1, 2026 the JPML lists 844 pending actions (1,064 in total over time).
NEC, state courts: including the Gill case in St. Louis ($495 million verdict, July 2024) and a $70 million verdict for four infants in Chicago on April 10, 2026.
Recall: In re: Recalled Abbott Infant Formula Products Liability Litigation, MDL No. 3037, Northern District of Illinois, Judge Matthew F. Kennelly — 5 actions pending as of October 1, 2026.
Government: United States, et al., ex rel. Millard, et al., v. Abbott Laboratories, No. 1:22-cv-994 (W.D. Mich.), settled September 14, 2026.
Status: Partial NEC Settlement, No Class, No Claim Form
On August 20, 2026 Abbott told the SEC it had reached agreements with three law firms to resolve the Gill case and NEC claims for about 2,000 more infants, for “an aggregate amount of approximately $670 million” (Abbott’s filing). Abbott calls it “not in any way an admission of liability.” Roughly 1,700 lawsuits covering about 12,700 infants remain pending. Our full report: the $670 million NEC deal.
On September 14, 2026 the Justice Department announced the $384,999,040 Sturgis settlement (DOJ release). That money goes to the U.S. and to state Medicaid and WIC programs — see our report on the $385 million case.
The recall class actions for buyers were dismissed in May 2023; only individual injury cases continued.
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Who Could Be Affected
NEC claims: families of premature infants who were fed cow’s-milk-based Similac preterm formula or fortifier in a hospital and were diagnosed with NEC. These are individual lawsuits, not a class. You are only part of the $670 million agreements if your case was already filed through one of the three settling firms — your own lawyer will tell you.
Recall injuries: infants who became ill after eating recalled 2022 Sturgis powder. Again, individual suits only.
Ordinary buyers: if you bought Similac and your child was not hurt, there is no open Similac settlement for purchasers. The buyer class claims in the recall MDL were dismissed in May 2023, and the government settlement does not pay consumers.
What a Similac Settlement Pays
How cases like this one end
Our copy of the federal courts’ own case database covers 627,540 product liability personal injury casesclosed in U.S. federal district courts between 2015 and 2025:
- 21.1% ended in a settlement recorded by the court. Another 51.6% were dismissed voluntarily, which often follows a private settlement — so the real settlement share sits between 21.1% and 72.6%.
- 0.9% were decided on a motion before any trial.
- 1 in 2,164 reached a trial (0%), after a median of 27.9 months.
- Median time from filing to the end of the case: 33.6 months.
- Only 147 of them (0%) record a money award at all; the median of those is $3,875,000.
These are base rates for this type of case (federal product liability personal injury cases) — not a prediction about this lawsuit, and not legal advice. Source: Federal Judicial Center, Integrated Database (civil), analysed by Settlement Insight. Cases heard in state courts are not included.
Similac Lawsuit Timeline
- 1
February 2022 — Sturgis Recall
Abbott recalls Similac, Alimentum and EleCare powder made in Sturgis, Michigan after Cronobacter and Salmonella findings. Recall and NEC suits are later centralized in Chicago.
- 2
July 2024 — $495 Million Gill Verdict
A St. Louis jury awards $495 million in an NEC case against Abbott. Abbott appeals in December 2024; the Missouri Court of Appeals affirms in May 2026.
- 3
April 10, 2026 — $70 Million Chicago Verdict
An Illinois state jury awards $70 million to four infants fed Similac Special Care — Abbott’s first verdict in Illinois state court.
- 4
July 2026 — Abbott Wins Federal Appeal
The Seventh Circuit affirms judgment for Abbott in the first federal MDL bellwether. Abbott says it won all three federal bellwethers.
- 5
August 20, 2026 — About $670 Million NEC Deal
Abbott agrees with three law firms to resolve Gill and claims for about 2,000 infants. Roughly 12,700 infants’ claims remain pending.
- 6
September 14, 2026 — $384,999,040 DOJ Settlement
Abbott settles the Sturgis False Claims Act case: $348,700,868 to the U.S., $36,298,172 to states, $69 million of the federal share to three former employees. No consumer payments.
Three Things to Watch For
Two big headline numbers and no claim form is the gap scammers fill:
“Claim your share of the $385 million”
The Sturgis settlement pays the federal government, state Medicaid and WIC programs, and three whistleblowers. There is no consumer fund. A site asking for your WIC card number or Social Security number to “file” is collecting data.
“You qualify for the $670 million Similac settlement”
That deal only covers cases already filed through three law firms. There is no public registration, no administrator and no deadline. No legitimate party charges an upfront fee to “reserve” a payment.
Recall refund texts
Messages promising cash for Similac you bought in 2022 point to a settlement that does not exist — the buyer class claims were dismissed in May 2023.
Similac Lawsuit — Questions People Actually Ask
Is there a Similac settlement I can file a claim for?
No, as of October 2026. Abbott’s approximately $670 million NEC agreements cover the Gill case and about 2,000 infants through three law firms, and the $384,999,040 DOJ settlement pays governments. Neither has a public claim form.
What is the Similac NEC lawsuit about?
Families allege that Abbott’s cow’s-milk-based preterm formula and fortifier given to premature babies cause necrotizing enterocolitis and that Abbott failed to warn. Abbott denies it. Regular Similac bought in stores for full-term babies is not what these cases are about. Full background: NEC baby formula lawsuit.
How much will families get from the $670 million?
Nobody has published a per-family amount. Abbott priced the Gill judgment with interest alone at about $600 million, so a simple average is misleading. Each settling firm explains terms to its own clients.
My child had NEC but our case is not among the 2,000. What now?
Your case continues as before — in MDL 3026 before Judge Pallmeyer or in a state court. Abbott says roughly 1,700 lawsuits for about 12,700 infants remain, and it intends to challenge some of them. Talk to your own lawyer.
I bought recalled Similac in 2022. Can I get money?
Not through a class action. Judge Kennelly dismissed the buyer economic-loss class claims in May 2023. Individual cases for infants who became ill continued; as of October 1, 2026, 5 remained pending in MDL 3037.
Does the $385 million DOJ settlement pay parents?
No. Of the $384,999,040, $348,700,868 goes to the United States and $36,298,172 to states’ Medicaid and WIC programs; three former Abbott employees who brought the case receive $69 million. The DOJ says the claims are “allegations only.”
Is Enfamil part of the Similac lawsuit?
Enfamil, made by Mead Johnson, is in the same federal MDL 3026, but Abbott’s August 2026 agreements cover only Abbott claims. A $60 million verdict against Mead Johnson was reversed by the Illinois Appellate Court in June 2026.
Did Abbott admit Similac caused harm?
No. Abbott calls the NEC agreements “a compromise of disputed claims and not in any way an admission of liability,” and the DOJ states there has been “no determination of liability” in the Sturgis case.
Separate from this case: were you injured in the last 2 years?
Class-action payouts are fixed amounts through an administrator. A personal injury claim is a different case — and often worth far more. Free estimate, no obligation.
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