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Reckitt and Abbott shares slump after multi-million lawsuit verdict

Published 07/29/2024, 05:04 PM
© Reuters
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Investing.com -- Shares in British consumer goods company Reckitt Benckiser (LON:RKT) hit their lowest level in over 11 years on Monday after a U.S. jury found that Abbott Laboratories ' formula caused a girl to develop a dangerous bowel disease, Reuters news reported.  

The jury determined that Abbott (NYSE:ABT) must pay $495 million in damages.

Nearly 1,000 lawsuits have been filed against Abbott Laboratories, British peer Reckitt Benckiser , or both, in U.S. federal or state courts, the report added.

"This is likely to depress sentiment on the risk for both cited defendants," Jefferies equity analysts stated in a note cited by Reuters.

Reckitt Benckiser shares fell as much as 9.2% to 40.75 pounds per share, their lowest level since January 2013. By 0724 GMT, shares were down 8.1% at 41.20 pounds per share, heading for their biggest daily drop since March.

Abbott shares plunged 6.8% in pre-market US trading.

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