Shares in Reckitt Benckiser (LON: RKT) fell around 1.7% on Monday, dropping to 5,026p from a previous close of 5,114p, as its US subsidiary Mead Johnson entered the first bellwether trial in a sprawling multidistrict litigation (MDL) over its Enfamil infant formula.<\/p>\n
The case, being heard in US federal court, is the first of thousands of lawsuits consolidated under the necrotizing enterocolitis (NEC) baby formula MDL. Plaintiffs allege that Mead Johnson, along with rival Abbott Laboratories, failed to adequately warn parents and hospitals that cow\u2019s-milk-based formulas such as Enfamil could raise the risk of NEC \u2014 a severe and sometimes fatal intestinal disease that predominantly affects premature infants. Reckitt and Mead Johnson deny the allegations and maintain that their products are safe when used as directed.<\/p>\n
Bellwether trials are used in mass litigation to test how juries respond to representative claims, often shaping the settlement strategy for the remaining cases. Abbott has already faced several similar trials, including a $70 million verdict earlier this year, intensifying scrutiny on the wider industry and adding pressure on Reckitt as the litigation risk becomes more tangible for investors.<\/p>\n
Interested in investing after today\u2019s move?<\/p>\n
\nXTB gives investors access to thousands of UK and international stocks,
\nincluding fractional shares from just \u00a31.\n<\/p>\n
\nYour capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.\n<\/p>\n Want to invest in the stocks making the news?<\/p>\n \nGo from following the market to investing in it, with access to thousands \nYour capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.\n<\/p>\n Own the stocks you\u2019re reading about<\/p>\n \nInvest in real shares across the UK, US and other major global markets \nYour capital is at risk. The value of your investments may go up or down. Past performance is not a reliable indicator of future performance.\n<\/p>\n You don\u2019t need to buy a whole share<\/p>\n \nFractional shares let you invest from just \u00a31, giving you more control
\nExplore stocks with XTB \u2192
\n<\/a><\/p>\n
\nof stocks across major UK and international markets.\n<\/p>\n
\nSee available stocks \u2192
\n<\/a><\/p>\n
\nthrough XTB, all from one investment account.\n<\/p>\n
\nExplore XTB shares \u2192
\n<\/a><\/p>\n
\nover how much you put into individual companies.\n<\/p>\n