Shares at household goods manufacturer Reckitt have plunged after a US court ruled that the FMCG is to pay £47.1m ($60m) to a mother whose baby died consuming its Enfamil infant formula.
An Illinois court found that London-listed consumer good company’s baby formula brand Enfamil caused necrotising enterocolitis (NEC), a bowel disease, in an infant.
The news sent the company’s share price plummeting as it lost £7.3bn ($9.3bn) in value and its market capitalisation plunged to its lowest levels since 2013.
Subscribe to Grocery Gazette for free
Sign up here to get the latest grocery and food news each morning
It is thought this verdict will be a gateway for the several hundred similar claims that have already been filed in US court against Enfamil, which is manufactured by Reckitt’s US infant formula business, Mead Johnson.
While Enfamil remains a primarily US brand, the FMCG’s portfolio spans across hygiene, health and nutrition divisions and includes popular UK supermarket brands such as Dettol, Nurofen and Strepsils.
Last week Reckitt again came under fire after a new report identified it as one of a series of “serial late payers” for small businesses in the UK.
Grocery Gazette has contacted Reckitt for comment.
