NEC Litigation Update, Decision From Appeal Court Favours Defendants

Research evidence excerpt

NEC Litigation Update, Decision From Appeal Court Favours Defendants

EUROPE | Food & HPC

Reckitt Benckiser EquityJuneResearch15, 2026

FLASH NOTENEC Litigation Update, Decision From Appeal

RATING HOLDCourt Favours Defendants

PRICE 4,638.00p^

On Friday, the Illinois Appellate Court reversed a $60m jury verdict against

Mead Johnson (Watson v MJN) & remanded for a new trial. This is the latest PRICE TARGET | % TO PT 5,600.00p | +21%

update re the ongoing NEC litigation. This latest court finding is helpful for 52W HIGH-LOW 6,523p - 3,664p

the defendants re perceptions on any settlement outcome, a process we FLOAT (%) | ADV MM (USD) 87.3% | 132.72

think could begin in the next few months. Further headlines on NEC litigation MARKET CAP £32.5B | $43.6B

are due in Aug (a bellwether case, Aug 11) and Nov 2026 (state trial, Collins TICKER RKT LN ^Prior trading day's closing price unless otherwise

v Mead). noted.

We are not lawyers and any legal opinion here is not qualified.

On Friday, the Illinois Appellate Court, Fifth District, reversed a $60 million jury verdict against

Mead Johnson (Watson v MJN) and remanded for a new trial.

Background. On 13 March 2024, a jury found Mead Johnson liable on failure to warn and

negligence related to the risks of using infant formula and the NEC condition in premature

infants, awarding $60 million. This decision had gone to appeal.

Issues on appeal. Mead Johnson argued the trial court erred by: (1) refusing to apply the

learned intermediary doctrine, (2) giving erroneous jury instructions, (3) admitting prejudicial

financial evidence, and (4) allowing the case to proceed without sufficient causation evidence.

Learned intermediary doctrine (ie, supplier does not have to warn the patient about risks

directly if the product is being prescribed).