March 14 (Reuters) - Reckitt said on Friday a

U.S. circuit court has ruled that a new trial could be sought by

plaintiffs in a case that had accused the London-listed firm and

Abbott of failing to warn of the risks of premature baby

formulas.

The ruling comes months after a St. Louis, Missouri state

court foundReckitt unit Mead Johnson and Abbott not responsible

for a young boy's debilitating intestinal disease in the case.

"This decision is at complete odds with the law and the

facts, and we will appeal," Reckitt said in a statement on its

website after the ruling on Thursday.

Shares in Reckitt were down 2.8%, and those in Abbott fell

2.9% at 1440 GMT.

The case is one of about 1,000 similar lawsuits around the

country, which have raised alarm from doctors who say the

litigation could threaten the formulas' availability or affect

medical decisions.

The lawsuit, brought on by the mother of a young boy named

Kaine Whitfield, alleged that the companies failed to warn that

their specialised formulas used by newborn intensive care units

in hospitals could cause necrotising enterocolitis.

It is a disease that almost exclusively affects premature

infants and has an estimated mortality rate of more than 20%.