Appeals Court Upholds Dismissal: Parents’ Claims Over Abbott Formula Price Dismissed
The 7th U.S. Circuit Court of Appeals has affirmed the dismissal of a proposed class action lawsuit brought by parents who alleged they had overpaid for Abbott Laboratories’ baby formula prior to a plant closure due to unsanitary conditions. The decision underscores the court’s rejection of the parents’ argument that they suffered economic loss and had standing to sue Abbott.
The court, led by U.S. Circuit Judge Michael Brennan, rejected the plaintiffs’ claim of hypothetical injury, emphasizing that they had received the product they purchased without any known contamination risks at the time. Judge Brennan emphasized that the parents were not at risk of harm as they were promptly informed not to use the formula and were offered refunds by Abbott.
This ruling aligns with the decision made by U.S. District Judge Matthew Kennelly, who oversees the multidistrict litigation concerning the formula recall. Despite this dismissal, other lawsuits alleging health issues due to contaminated formula remain pending.
Abbott Laboratories closed its Sturgis, Michigan plant in February 2022 and recalled products due to unsanitary conditions, causing a nationwide shortage. While the plant reopened in July 2022 after addressing concerns with the FDA, numerous lawsuits alleging health complications from contaminated formula are still ongoing.
The case, titled Economic Loss Plaintiffs v. Abbott Laboratories, continues to unfold, with plaintiffs represented by Kiley Grombacher of Bradley Grombacher and Abbott represented by John O’Quinn of Kirkland & Ellis.
