Robbins LLP is Investigating Allegations that Reckitt Benckiser Group PLC (RBGLY) Misled Investors Regarding the Safety of its Enfamil Baby Formula

Robbins LLP informs stockholders that a class action was filed on behalf of investors who purchased or otherwise acquired Reckitt Benckiser Group PLC (OTC: RBGLY) American Depository Shares (ADSs) between January 13, 2021 and July 28, 2024. Reckitt is a United Kingdom-based global consumer goods company that reports three operating segments: Hygiene, Health, and Nutrition.

The Allegations:

According to the complaint, defendants failed to warn investors and consumers: (1) that preterm infants were at an increased risk of developing NEC by consuming Reckitt’s cow’s milk-based formula, Enfamil; and (2) of the attendant impact on Reckitt’s sales of Enfamil and Reckitt’s exposure to legal claims.

The complaint alleges that on March 15, 2024, in the case captioned Watson vs. Mead Johnson Co., Docket No. 21-L-1032 (Ill. Cir. Ct. Oct. 28, 2021), a jury in St. Clair County, Illinois, returned a $60 million verdict in the first NEC lawsuit to be tried to a verdict.  The jury found that Mead Johnson was negligent and failed to warn the decedent’s mother of the increased risk her preterm infant could develop NEC by consuming cow’s milk-based formula.  On this news, the price of the Company’s ADSs fell $1.87, or nearly 14%, from a closing price of $13.31 per share on March 14, 2024, to a closing price of $11.44 per share on March 15, 2024. 

Then, on July 29, 2024, in the case captioned Gill v. Abbot Laboratories, Inc., Docket No. 2322-CC1251 (Mo. Circ. Ct. Jun. 23, 2023), a jury in St. Louis, Missouri concluded that Abbott’s specialized formula for premature babies led to a baby develop NEC and awarded the plaintiff $495 million.  On this news, the price of the Company’s ADSs fell $1.02, or nearly 9%, from a closing price of $11.66 per share on July 28, 2024, to a closing price of $10.64 per share on July 29, 2024.

What Now: You may be eligible to participate in the class action against Reckitt Benckiser Group PLC. Shareholders who want to serve as lead plaintiff for the class must file a motion for lead plaintiff by August 4, 2025. The lead plaintiff is a representative party who acts on behalf of other class members in directing the litigation.  You do not have to participate in the case to be eligible for a recovery. If you choose to take no action, you can remain an absent class member.