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Class action lawsuits

Reckitt Benckiser Group PLC Faces Securities Class Action Lawsuit

Strategic Insights

— 1 min read

Reckitt, a UK-based consumer goods company, has been accused of making misleading statements regarding the safety of its Enfamil formula for premature infants. The Class Action lawsuit, filed by Scott+Scott Attorneys at Law LLP, alleges that the company failed to warn investors and consumers about the increased risk of necrotizing enterocolitis (NEC) associated with the use of Enfamil in preterm infants. The lawsuit seeks to represent all individuals who purchased Reckitt's American Depositary Shares (ADSs) between January 13, 2021, and July 28, 2024.

Key Takeaways:

  • The Class Action lawsuit, filed by Scott+Scott Attorneys at Law LLP, alleges that Reckitt made misleading statements about the safety of its Enfamil formula for premature infants.
  • The lawsuit claims that the company failed to warn investors and consumers about the increased risk of NEC associated with the use of Enfamil in preterm infants.
  • Over 500 state and federal products liability lawsuits have been filed against Reckitt and its competitor, Abbott Laboratories, alleging that they failed to adequately warn about the risk of NEC.
  • A jury in Illinois reached a $60 million verdict in the first NEC lawsuit to be tried to a verdict in March 2024.
  • A jury in Missouri awarded a plaintiff $495 million in July 2024 in a similar NEC lawsuit.
  • The price of Reckitt's ADSs fell $1.87 and $1.02, respectively, after the March and July 2024 verdicts.
  • Investors who purchased Reckitt ADSs during the Class Period may be able to seek appointment as lead plaintiff and share in any Class recovery.
  • The deadline to apply to be lead plaintiff is August 4, 2025.

Statistics:

  • Over $500 million in damages was awarded to plaintiffs in the NEC lawsuits against Reckitt and Abbott.
  • The price of Reckitt's ADSs fell by 14% and 9% after the March and July 2024 verdicts, respectively.
  • 500+ state and federal products liability lawsuits have been filed against Reckitt and Abbott.
  • 2 jury verdicts have been reached in the NEC lawsuits, with damages totaling over $555 million.

Sources:

  • Newsfile Corp. ("--(Newsfile Corp. - July 8, 2025)")
  • Reuters
  • Bloomberg

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