Reckitt Benckiser’s Mead Johnson Faces First Bellwether Trial Over Enfamil, Shares Slip

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.

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’s-milk-based formulas such as Enfamil could raise the risk of NEC — 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.

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.

Monday’s share price weakness reflects growing investor unease over the potential financial and reputational fallout, even though Reckitt has repeatedly said it believes the claims are without merit and intends to defend itself vigorously. Analysts have flagged the Mead Johnson litigation as a key overhang on the stock, with some arguing Reckitt’s core brands remain undervalued despite the legal risk.

The outcome of this bellwether trial will be closely watched as an early signal of how US courts — and juries — may treat the thousands of similar claims still pending against the company.