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RBGPF.US
id: 1617
Reckitt Benckiser ($RBGLY) Hidden Health Risk, Enfamil Lawsuits, and Stock Drop Case
Investors can submit applications for the lead plaintiff role.
S.D. New York
Court1:25-cv-04708
Case number01/13/2021
Class period Start07/28/2024
Class period End08/05/2025
Lead Plaintiff motion deadline- $RBGLY investors filed a claim against Reckitt Benckiser for failing to disclose that its Enfamil infant formula posed serious health risks to premature babies and misrepresenting the product’s safety record.
- After two jury verdicts totaling over $550 million revealed the extent of Reckitt’s liability, $RBGLY fell a combined 22.5% across March and July 2024.
Case Details:
Between January 13, 2021 and July 28, 2024, Reckitt Benckiser repeatedly told investors that Enfamil—its flagship infant formula sold through its Mead Johnson subsidiary—was safe, well-researched, and trusted by hospitals worldwide. The company gave no indication that it faced serious litigation or health concerns related to the product.
However, Enfamil contained cow’s milk proteins and had long been linked to necrotizing enterocolitis (NEC), a life-threatening gastrointestinal disease that affects premature infants. Internal documents and medical evidence showed Reckitt knew about this risk but failed to update its warnings or inform the public.
On March 15, 2024, a jury in Illinois awarded $60 million to the family of a premature infant who developed NEC after being fed Enfamil. $RBGLY fell nearly 14% after the verdict.
Then on July 29, 2024, a separate jury issued a $495 million verdict in a similar case against Abbott, highlighting systemic risks across the infant formula industry.
$RBGLY fell another 9% on the news, as Reckitt was facing similar lawsuits.
Based on these events, $RBGLY investors filed a claim against Reckitt Benckiser, accusing the company of the following:
- It misled investors about the safety and litigation risks of its Enfamil formula.
- It failed to disclose known links between cow’s milk formula and NEC in premature infants.
- It concealed the financial and reputational risks from active product liability lawsuits.
Considering all the representations, investors believe Reckitt concealed material health and legal risks to preserve its brand image and financial outlook.
Case Type
US Securities Class Action
Case Status
Lead Plaintiff Submission
Alleged Offence
Misleading Statements,
Fraud,
Failure to Disclose
Suspected Party
Directors,
Management
Security Type
Depository Securities (ADS, ADR, GDR)
Trade Direction
Long
Shock Event Date
07/29/2024
Filing date
06/05/2025
Lead Plaintiff Deadline
08/05/2025