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.
“RKT share price we estimate is already discounting for c £3/$3.5bn of liability risk and ABT shares have lost ~$30B in mkt cap since the first verdict against RKT in March,” they added.
The analysts also added that the verdict could lead to additional state-level cases and that litigation concerns may continue to weigh on both companies’ share prices until the MDL bellwether trials begin in 2025.
Abbott shares plunged 6.8% in pre-market US trading.