Major Legal Reversal: Baby Formula Makers Lose Key Jurisdictional Battle in NEC Litigation Spike

Key points

• The Seventh Circuit reversed a decision to keep five out-of-state NEC lawsuits in an Illinois-based multidistrict litigation, potentially allowing them to move to state courts.
• The court ruled that the lower district court went 'far afield' in its analysis of fraudulent joinder, a technical move companies use to keep cases in federal court.
• This shift could lead to higher legal costs and more unpredictable, 'nuclear' verdicts for major formula manufacturers, affecting the entire food industry's insurance risk profiles.

This report is part of Foodie Pundit premium coverage. Foodie Pundit members read the full story. See membership.

Sources and methodology

Reported from the public datasets below.

• Federal Trade Commission (FTC) - FTC enforcement actions
• U.S. Department of Justice (DOJ) - DOJ press releases and filings

All sources Foodie Pundit reports from

More from the Foodie Pundit Newsroom

• Your Next Lamb Chop Has Already Been Weighed By An Algorithm
• An Allergen in the Pantry: Brownie Recall Highlights Systemic Labeling Risks
• The Great Tablet Swivel and the End of Tipping as We Knew It
• Why Your Pantry Is Slowly Turning Into A Costco Showroom
• Your Feed's $45 Crab Special Is An All Out War