Reckitt Benckiser Group PLC (RBGLY) Securities Class Action Lawsuit Update [July 7, 2025]

Introduction  to Reckitt Benckiser Group PLC (RBGLY) Lawsuit

You bought Reckitt Benckiser stock, expecting a solid return. They pitched Enfamil, their cow’s milk based formula, as a miracle for preterm babies—doctors swore by it, science seemed tight. But a class action securities lawsuit says they hid a problem. Enfamil’s link to necrotizing enterocolitis (NEC), a disease hurting babies, sparked big lawsuits. Investors lost hundreds of millions when the news broke and filed a lawsuit against Reckitt. The class period spans January 13, 2021, to July 28, 2024. Verdicts landed heavy, stocks sank, and shareholders are pushing back.

Reckitt Benckiser Group PLC (RBGLY) Lawsuit Case Details 

Case Name: Elevator Constructors Union Local No. 1 Annuity & 401(K) Fund v. Reckitt Benckiser Group PLC, et al. 
Case Number: 1:25-cv-04708 
Jurisdiction: U.S. District Court, Southern District of New York 
Filed on: June 5, 2025 

 Reckitt Benckiser Group PLC (RBGLY) Company Profile  

Reckitt Benckiser, a U.K. heavyweight in Slough, England, covers Hygiene, Health, and Nutrition. Their $19.7 billion Mead Johnson buy in 2017 kicked off the Nutrition segment, with milk based formula Enfamil sold as a must for preterm infants. From Parsippany, New Jersey, Reckitt Benckiser Group PLC’s American Depositary Shares (ADSs) trade as “RBGLY” on the OTC market; ordinary shares tick as “RB” on the London Stock Exchange. They bet big on science—until securities fraud claims cut deep.

Class Period: 

January 13, 2021 to July, 28, 2024 

Investors who purchased Reckitt securities during the class period might be eligible to join the Reckitt securities class action lawsuit. 

Allegations in the Reckitt Benckiser Group PLC (RBGLY) Securities Lawsuit

The Reckitt Benckiser lawsuit claims Reckitt and its executives—Laxman Narasimhan, Jeffery Carr, Nicandro Durante, Kristoffer Loe Licht, Patrick Sly—broke securities law under the Securities Exchange Act. In January 2021, at a JPMorgan Healthcare Conference, Narasimhan hyped Mead Johnson’s “science platforms” as the Nutrition segment’s core. Press releases and earnings calls through 2023 kept it going, with execs boasting Enfamil’s near-50% U.S. non-WIC market share, doctor trust, and a “five-fold” R&D boost for microbiome science. Licht said Enfamil NeuroPro gave “brain superiority” with top-notch science, a line the company’s business reports doubled down on.

But the truth stung. The complaint says milk based formula Enfamil raised the risk of NEC—a disease causing infant pain, even death. Reckitt Benckiser allegedly hid this, covering threats to Enfamil sales and legal claims while propping up ADS prices. Licht’s April 2024 claim that Enfamil was “life-saving” with no NEC link fell flat, per the complaint. 

The filed complaint alleges Reckitt’s failure to disclose those risks violated federal securities laws, such as Sections 10(b) and 20(a) of the Securities Exchange Act. Plaintiffs' legal claims include that Reckitt's statements about Enfamil's safety and efficacy were materially false and misleading, that the company lacked a reasonable basis for those misleading statements, and those statements adversely affected investors.

The Truth Emerges

March 15, 2024, ripped the mask off. A St. Clair County, Illinois, jury in Watson v. Mead Johnson Co. hammered Mead Johnson with a $60 million verdict for dodging warnings about NEC risks tied to cow's milk based formula. On July 29, 2024, a $495 million verdict in Gill v. Abbott Laboratories, Inc. against a rival for similar claims spotlighted Reckitt Benckiser’s own peril. The truth, marred by alleged securities fraud, slashed through the company’s shiny veneer.

Market Reaction 

The market flinched hard. On March 15, 2024, Reckitt Benckiser’s ADSs shed $1.87—nearly 14%—slipping from $13.41 to $11.54. July 29, 2024, brought another bruise: $1.02, nearly 9%, from $11.66 to $10.64, after the Gill verdict. Shareholders, stung by Reckitt Benckiser’s silence, saw their stakes vanish like smoke.

Next Steps  

• Submissions for lead plaintiff are due August 5, 2025. 

• The Court will issue its order for lead plaintiff and counsel in the weeks after submissions are due.    

• The Court will then consider motion for class certification.     

• The Court will later consider a Motion to Dismiss.    

To learn if you are eligible for recovery under the Reckitt securities class action lawsuit, visit the case submission page here. 

Disclaimer: This shareholder alert is for informational purposes only and does not constitute legal advice. Consult a qualified attorney for personalized guidance. No specific outcomes are guaranteed.