We would love to hear your thoughts about our site and services, please take our survey here.
London South East prides itself on its community spirit, and in order to keep the chat section problem free, we ask all members to follow these simple rules. In these rules, we refer to ourselves as "we", "us", "our". The user of the website is referred to as "you" and "your".
By posting on our share chat boards you are agreeing to the following:
The IP address of all posts is recorded to aid in enforcing these conditions. As a user you agree to any information you have entered being stored in a database. You agree that we have the right to remove, edit, move or close any topic or board at any time should we see fit. You agree that we have the right to remove any post without notice. You agree that we have the right to suspend your account without notice.
Please note some users may not behave properly and may post content that is misleading, untrue or offensive.
It is not possible for us to fully monitor all content all of the time but where we have actually received notice of any content that is potentially misleading, untrue, offensive, unlawful, infringes third party rights or is potentially in breach of these terms and conditions, then we will review such content, decide whether to remove it from this website and act accordingly.
Premium Members are members that have a premium subscription with London South East. You can subscribe here.
London South East does not endorse such members, and posts should not be construed as advice and represent the opinions of the authors, not those of London South East Ltd, or its affiliates.
Guird - You are quite right. American jurors absolutely love to 'stick it' to non-American companies who have the temerity to trade in their markets, failing to comprehend the contribution to their economy in terms of employment and taxes. As you mentioned, this was demonstrably the case regarding the treatment of BP. I was living in southern Alabama when the Deepwater Horizon event occurred , and my partner and I drove down to the gulf several times to see what was going on, over the course of a few months. In the early stages, there was a terrible smell, but not once did we actually see any oil on any of the beaches. However, the locals, with the backing of their representatives were having an absolute field day. They had political backing right up to the Oval Office, with Barrack Obama making some highly inflammatory comments. You wouldn't believe the number of businesses (tourism, restaurant, fishing) which were completely revamped on BP's coin, and then some. No-one would deny that BP screwed up royally (well actually their subcontractor, but..) and they did need to be held responsible - but the claims and litigation were distinctly anti-British.
Now with respect to Illinois, I think it has one of, if not the largest 'Irish' population outside of Ireland. When I worked in NYC, the IRA would hold fund-raising events right outside my office on Madison Avenue, with the support of both the average American office worker and the authorities. Americans' definition of terrorists is very flexible. The fact that the Illinois jury awarded more than double the plaintiff's claim speaks volumes. I'll leave this here...
Driftking27 - I think old FF is about as good at sums as he is with writing English...
If this product has been round since 1959, as one poster informed us, and this is the first case against it, It is hard to believe there is any merit in it. Also, knowing how stringent FDA approvals are, I can't imagine if a product had some known risks, it could be sold without those risks being documented on the product.
I'm guessing of course, but it just sounds very unlikely that the verdict is correct.
The former CEO destroyed the company
Some very dumb people in Illinois it seems.
Plenty of people have tried catching falling knives and most regret it.
Kudos to those who time it right. I’m going to keep tabs here until the dust settles.
GLA
Never looked at after hour buys on any share, but go and see the numbers going through.
(1720-1815) at 4480 - 5000p orders £60m worth in 6orders
Has to be buys, or coujd it be late lander orders from earlier in mornings?
The cause for NEC is unknown. Yet they argue that Enfamil or Similac cause NEC?
There is only correlation that for babies who are born prematurely or who are weak or underweight the prevalence of necrotizing enterocolitis is more common.
This appears to be the case when babies are fed exclusively these products. Is it not more likely this condition emerges due to lack of proper nutrition from mother milk!? why should they put a label on a product made for babies:"INCREASES THE RISK OF NECROTIZING ENTEROCOLITIS" . No sane person would buy it.
And if its true then what kind of person/company would put it out ?
There was slightly different case with Indivior in the US and at one point the sp fell 23p (or 230p after consolidation I believe) - People were spouting same rubbish that it will go under blah blah. Indivior sp currently c.1650p. I was about to press a button but didnt have the guts.
You bought 15000 ? When
That’s roughly £630k worth at todays value
If you had that sort of dough, you Wouldn’t be on this message board posting this short message
AGREE
Enfamil, introduced in 1959, has undergone several significant formulations — each one designed to optimise nutrition. With over a century of innovation behind it, Mead Johnson Nutrition strives to be the world's leading provider of science-based paediatric nutrition products.
I wouldn’t be a buyer at now.
Thus will continue to fall until possitive news comes out.
It’s a WATCH as this could be catastrophic . NO one knows
It’s a buying opportunity in future..
For now, I would leave this news to settle abd see what happens in 2months.
It’s not going bankrupt.
My stockbroker Rathbones have their Research team on it, and I’ll post any update I can in coming weeks ahead.
I only have 100 shares at £58.50
Consumer goods giant Reckitt has suffered a £7bn share price slump after it lost a US legal case claiming its baby formula contributed to the death of a premature child.
London-listed Reckitt’s share price plunged by the most in two decades and to its lowest point in more than a decade after an Illinois jury ruled Reckitt had failed to warn about the risks of necrotising enterocolitis (NEC) from its milk-based Enfamil brand products.
NEC is an illness that damages the stomach and tends to affect premature babies. Reckitt’s US subsidiary Mead Johnson Nutrition had been sued by Jasmine Watson, who claimed the baby formula caused the death of her premature baby.
FTSE 100-constituent Reckitt has now been ordered to pay Ms Watson $60m (£47m) after losing the case.
Ashley Keller, a lawyer for Ms Watson, said: “The jury’s finding confirms what Mead Johnson folks already knew – that its formula dramatically increases the NEC risk “This is the first verdict in the US, but won’t be the last, unless baby formula makers accept responsibility for their misdeeds.”
News of the decision sparked a near 20pc plunge in Reckitt’s share price, wiping around £7.3bn ($9.3bn) from its market value.
It comes amid hundreds of US lawsuits against formula makers over NEC. The Illinois case was the first to go to a jury trial.
Shares in Abbott Laboratories, another formula maker facing legal claims, fell almost 5pc. Jurors took less than two hours to decide that Mead Johnson should pay $60m in compensatory damages. Mr Keller said: “We only asked for $25m, but the jury came back with more than double that.”
More than 400 suits targeting Mead Johnson and Abbott are consolidated before a federal judge in Chicago for pre-trial information exchanges. The judge hasn’t yet scheduled a trial. Thousands of other suits are pending in state courts, Mr Keller said. Reckitt continues to insist its products are safe and not linked to NEC. It has vowed to appeal the Illinois case.
NEC has a fatality rate of as much as 40pc. It is a major cause of death among premature babies, though rarely occurs in full-term babies.
The disease, which affects intestinal tissues, can be hard to diagnose. According to the NHS, symptoms can include general signs of illness, problems feeding or vomiting, and a swollen and tender abdomen.
While it has a high fatality rate, it can be treated with intravenous feeding and antibiotics. In some cases it can require surgery.
Reckitt said in a stock market update that it stands by the safety of its products and “strongly rejects any assertion that any of our products cause NEC”.
The company added: “It is important to note that this is a single verdict in a single case and should not be extrapolated.
“This case, and others like it, exclusively involve products used under the strict supervision of neonatologists in neonatal intensive care units and provide lifesaving nutrition options for
"https://www.hl.co.uk/shares/share-research/reckitt-us-infant-formula-unit-loses-court-battle"
Reckitt, through its US subsidiary Mead Johnson, has been ordered to pay $60mn by an Illinois court in a case against its infant baby formula. Mead Johnson has said it would appeal the decision.
There are in the region of 160 further lawsuits relating to similar issues that are still pending.
Reckitt has not previously set aside any specific provisions in anticipation of losing these cases.
That is the real issue: if RKT didn't set aside any financial provisions, and you understand II avoid risk, than no wonder this is being dumped.
Over reaction from the herd. Managed to get some at 4300. This will open 4500 on Monday and go back to 5000. Remember we are talking US justice system who took women's right of abortion! Its ridiculous!
"Reckitt stock is down 8% today following the $60m verdict in Enfamil baby formula that caused the death of a baby in Illinois
"This verdict confirms what Mead Johnson has known for years: cow's-milk based baby formula causes NEC in preterm infants, often with fatal consequences," Ben Whiting, a lawyer for Watson, said in a statement.
Mead Johnson said in a statement that it was disappointed with the verdict and would appeal it.
Hundreds of similar cases are in progress
Mead-Johnson may well go down as one of the worst acquisition in the fmcg history
Tough news after the Q4 Miss & the accounting misrepresentation issues "
Ok not good! But just to my daughter who knows about such things things and has told me NEC is not caused by baby formula if the baby was suffering with stomach & bowel possibly formula irritating or made worse just like certain foods can do to us all my daughter would know she clued up due to my granddaughter very similar last 13 years from what she has said not possible hopefully RKT will challenge and not just give in not withstanding and feeling for the child & family
"This case, and others like it, exclusively involve products used under the strict supervision of neonatologists"
If that's the case then surely it is the prescribing neonatologist who is at fault.
60m is insignificant fraction of the market capitalisation of the company. I am adding. This is a bargain for me.
With less than 1% traded , and a few £B wiped of the MC ....I don't think the ii's are taking it too seriously.
Unfortunate as it is , I see this as an isolated case.
" the first trial out of hundreds of lawsuits "
So, all good saying the first lawsuit should never have been lost, but they did and hundreds more to follow.
Investors see this as a risk, and until that risk goes away, ....
"and sheep investors run for hills".
Don't forget, this is not a retail share (i.e. private investors). Mostly institutional investors....
"This case, and others like it, exclusively involve products used under the strict supervision of neonatologists in neonatal intensive care units and provide lifesaving nutrition options for vulnerable premature infants." Say no more, this case should be thrown out. FALCONER. Well done on purchase. Got some Myself although not in the amount You have. I wish.. Good Luck
I think it's about 2 key issues:
1) the fear that more similar lawsuits could happen
and cost them a whole lot more
2) underlying business performance hasn't been what shareholders have been used to in the past (the Bart Becht days)
What's the worry here wow 60mn and sheep investors run for hills, why.
You all no company's like RKT, have liability & litigation insurance policys, RKT, will have liability cover they pay high premiums for liability risk,.
The drops day traders n nervous retail investors.
For record I've bought 15000 shares your well come, it will recover nxt week nxt month, but I've just with a 20% discount today