-- (Updates with the company's response in the fourth paragraph.)
Abbott Laboratories (ABT) has been ordered by a jury in Chicago to pay $53 million in compensatory damages to a group of families related to four cases over its infant formula, the Chicago Tribune reported Thursday.
The families accused the company of allegedly failing to inform them that its infant formula could develop a dangerous intestinal disease in premature infants, according to the report.
The Cook County jury found that the formula's design was defective and Abbott failed to adequately warn about its potential risks, the report said. The jury will reconvene on Friday to determine how much the company will have to pay in punitive damages, the report added.
An Abbott spokesperson toldthat the company strongly disagrees with the verdict and plans to appeal, adding it is out of step with the consensus of the medical community and regulators and noting that four federal and state courts have dismissed similar lawsuits.
(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)
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