06:41 AM EDT, 07/29/2024 (MT Newswires) -- Abbott Laboratories ( ABT ) was ordered to pay $495 million by a jury over claims it failed to disclose the risk that its Similac premature infant formula can cause a potentially fatal bowel disease, the Wall Street Journal reported late Friday.

The Chicago-based nutritional products company was accused of failing to highlight the increased risk of a gastrointestinal disease called necrotizing enterocolitis from its formula for preterm infants, WSJ said.

"We strongly disagree with the verdict," an Abbott spokesman said. "We will pursue all avenues to have the erroneous decision overturned."

According to the report, the verdict included compensation and $400 million in punitive damages.

Abbott did not immediately respond to MT Newswires' request for verification.

Abbott shares were 7% lower in the premarket session.

(Market Chatter news is derived from conversations with market professionals globally. This information is believed to be from reliable sources but may include rumor and speculation. Accuracy is not guaranteed.)

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