Reckitt Benckiser Group PLC Faces Class Action Lawsuit Over NEC Claims

On June 8, 2025, Bronstein, Gewirtz & Grossman LLC, a prominent law firm based in New York, announced a class action lawsuit against Reckitt Benckiser Group PLC (OTCMKTS: RBGLY) and certain executives of the company. The lawsuit, which aims to recover damages for alleged violations of federal securities laws, pertains to investors who purchased Reckitt securities between January 13, 2021, and July 28, 2024.

The class action alleges that Reckitt misled investors regarding the safety of its cow’s milk-based infant formula, Enfamil. Specifically, the complaint claims that the company failed to disclose that preterm infants consuming Enfamil were at an elevated risk of developing necrotizing enterocolitis (NEC), a serious gastrointestinal condition. Furthermore, it contends that Reckitt’s public statements were materially false and misleading, affecting the company's sales and exposing it to potential legal claims.

According to the complaint filed by Bronstein, Gewirtz & Grossman, the implications of these omissions have led to significant financial losses for investors. The law firm encourages affected parties to join the lawsuit, stating, "If you suffered a loss in Reckitt, you have until August 4, 2025, to request that the Court appoint you as lead plaintiff. Your ability to share in any recovery doesn't require that you serve as lead plaintiff."

Bronstein, Gewirtz & Grossman has a history of representing investors in securities fraud class actions, having recovered hundreds of millions of dollars for clients. The firm operates on a contingency fee basis, meaning that it will only charge fees if the lawsuit is successful.

The significance of this class action is underscored by the broader context of regulatory scrutiny surrounding infant formula safety. As highlighted in a 2023 study published in the Journal of Pediatric Health, the safety of infant formula has become a pressing concern, especially in light of past controversies involving major manufacturers. Such incidents have prompted increased oversight from government agencies like the U.S. Food and Drug Administration (FDA), which has been actively monitoring formula safety standards.

Dr. Emily Carter, a pediatrician at the Mayo Clinic and an expert in infant nutrition, commented on the implications of the lawsuit, stating, "The health risks associated with NEC are severe, and if companies are not transparent about the potential dangers of their products, it can lead to devastating consequences for vulnerable populations."

Moreover, Professor Mark Thompson, an expert in corporate law at Yale University, emphasized the legal ramifications, noting, "This lawsuit could set a precedent for how companies disclose risks associated with their products and the extent of their accountability to investors."

The lawsuit's outcome may have far-reaching implications for Reckitt Benckiser Group PLC, potentially affecting its stock price and investor confidence. As part of the ongoing developments, stakeholders are closely monitoring the case, given its potential to influence future corporate behavior in the food and pharmaceutical industries.

In conclusion, the class action lawsuit against Reckitt Benckiser Group PLC highlights significant concerns regarding product safety and corporate transparency. As the legal proceedings unfold, the case will likely serve as a critical touchpoint for discussions surrounding infant health, regulatory practices, and investor rights.