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Class action lawsuits

Scott+Scott Files Securities Class Action Lawsuit Against Reckitt Benckiser Group PLC

Strategic Insights

— 2 min read

Scott+Scott, an international shareholder and consumer rights litigation firm, has filed a securities class action lawsuit in the United States District Court for the Southern District of New York against Reckitt Benckiser Group PLC and certain of its former and current officers and/or directors. The lawsuit asserts claims under the Securities Exchange Act of 1934 on behalf of all persons who purchased or acquired Reckitt American Depositary Shares between January 13, 2021, and July 28, 2024, and were damaged thereby. The lawsuit alleges that Reckitt failed to adequately warn investors and consumers about the increased risk of developing necrotizing enterocolitis in premature infants who consumed cow milk-based formula, including Reckitt's Enfamil. The lawsuit also claims that the company's positive statements about its business, operations, and prospects were materially false and misleading.

Key Takeaways:

  • The lawsuit asserts claims under the Securities Exchange Act of 1934 on behalf of all persons who purchased or acquired Reckitt American Depositary Shares between January 13, 2021, and July 28, 2024, and were damaged thereby.
  • The lawsuit alleges that Reckitt failed to adequately warn investors and consumers about the increased risk of developing necrotizing enterocolitis in premature infants who consumed cow milk-based formula, including Reckitt's Enfamil.
  • Over 500 state and federal products liability lawsuits have been filed against Reckitt and its competitor, Abbott Laboratories, claiming that they failed to adequately warn about the risk of NEC.
  • The market began to learn the truth on March 15, 2024, when a jury in St. Clair County, Illinois, returned a $60 million verdict in the first NEC lawsuit to be tried to a verdict, and again on July 29, 2024, when a jury in St. Louis, Missouri, awarded the plaintiff $495 million in a similar case.
  • The price of Reckitt's ADSs fell $1.87, or nearly 14%, on March 15, 2024, and fell $1.02, or nearly 9%, on July 29, 2024, after the verdicts were announced.

Statistics:

  • Over 500 state and federal products liability lawsuits have been filed against Reckitt and its competitor, Abbott Laboratories.
  • On March 15, 2024, the price of Reckitt's ADSs fell $1.87, or nearly 14%, to $11.44 per share.
  • On July 29, 2024, the price of Reckitt's ADSs fell $1.02, or nearly 9%, to $10.64 per share.
  • The jury in St. Clair County, Illinois, returned a $60 million verdict in the first NEC lawsuit to be tried to a verdict.
  • The jury in St. Louis, Missouri, awarded the plaintiff $495 million in a similar case.

Sources:

  • Scott+Scott Attorneys at Law LLP
  • Reckitt Benckiser Group PLC
  • GlobeNewswire, July 7, 2025
  • Elevator Constructors Union Local No. 1 Annuity & 401(K) Fund v. Reckitt Benckiser Group PLC, et al., Case No. 1:25-cv-4708
  • Watson vs. Mead Johnson Co., Case No. 21-L-1032 (Ill. Cir. Ct. Oct. 28, 2021)
  • Gill v. Abbot Laboratories, Inc., Case No. 2322-CC1251 (Mo. Circ. Ct. Jun. 23, 2023)

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