How Product Defects Lead to Multimillion-Dollar Lawsuits

Everyday items are made to simplify life, not put it at risk. Yet products like baby formula, kitchen appliances, and children’s toys have been linked to serious injuries, illnesses, and even death. 

According to NSC, around 12.7 million people were treated in emergency rooms for injuries caused by consumer products in 2023. In many cases, the danger lies in design flaws, careless manufacturing, or the lack of proper safety instructions. 

When a product harms someone, the fallout can be life-changing. And for the companies responsible, the legal and financial consequences are often massive. Insurance Journal highlights that 5,826 product liability cases (not including MDL-related cases) were filed in federal district courts. U.S. courts awarded $214 million in approved class action settlement damages. 

This blog post explains how defective products lead to legal battles and significant financial penalties.

What Makes a Product Legally “Defective”?

In legal terms, a product is considered defective when it poses an unreasonable risk of harm to the consumer. Even when used as intended. U.S. product liability law recognizes three main types of product defects: 

• Design defects: It occurs when the product is unsafe from the start, before it even reaches the factory floor. 
• Manufacturing defects: They arise during production. The product may have been designed correctly, but something goes wrong during assembly, packaging, or quality control.
• Failure to warn: This applies when a product lacks proper safety instructions or warnings. If consumers are not told how to use a product safely or are unaware of potential risks, the company can be held liable.

Under U.S. law, plaintiffs don’t need to prove that the company intended to cause harm. It’s enough to show that the product was unreasonably dangerous and that the defect directly led to injury or loss. This standard helps protect consumers by holding manufacturers and retailers accountable for the safety of their goods.

Real-World Harm and Legal Action

Several recent recall cases reflect the real harm caused by defective products and the legal consequences that followed. For example, Fisher-Price recalled 4.7 million Rock ‘n Play Sleepers following reports that the product was connected to over 30 infant deaths. These deaths occurred when babies rolled onto their stomachs while unrestrained.

Since the recall, about 70 more infant deaths have been reported. The total number of deaths tied to the product was approximately 100, as highlighted by CBS News. This case led to substantial legal settlements and increased scrutiny over infant sleep products.

The NEC baby formula lawsuit emerged as another major case. TorHoerman Law says parents allege that cow’s milk–based formulas, specifically Abbott’s Similac and Mead Johnson’s Enfamil, increase NEC risk but lack proper warnings. There are already hundreds—over 650 by March 2025—of similar lawsuits within the MDL, with more filed in state courts.

Reuters reports that a jury found Abbott Laboratories’ baby formula fed to premature infants caused a serious illness in an Illinois girl. Abbott has been ordered to pay $495 million in the NEC lawsuit payout. The verdict was not unanimous—9 out of 12 jurors supported the decision, which is valid under Missouri civil law (requires three-fourths agreement).

These examples led to large-scale legal action. Individual lawsuits over similar harm are often combined into mass torts. These court cases demonstrate how product liability can lead to injury, legal action, and steep financial consequences. 

How Defective Products Lead to Multimillion-Dollar Verdicts

Severe injuries, death, or permanent disability drive large payouts. Courts consider medical expenses, lost income, and emotional harm. In cases involving children’s products or life-altering harm, juries often award higher sums.

Corporate misconduct or attempts to hide defects also increase liability. For example, the Johnson & Johnson talcum powder litigation revealed reports linking talc to ovarian cancer. The Guardian reports that J&J has faced tens of thousands of lawsuits over its talc products. The company has proposed paying billions of dollars to settle nearly 60,000 claims. However, they continue to deny any link between their products and cancer.

Punitive damages play a major role in verdicts. These aim to punish companies for reckless behavior. They are awarded on top of compensation for victims. In product liability trials, juries assign these when harm was foreseeable and ignored.

Recent trends show an increase in so-called “nuclear verdicts.” It is when the court’s verdict awards over $10 million. Corporate Compliance Insights reports that nuclear verdicts have nearly tripled since 2020. In 2023 alone, these large verdicts increased by 27%. Whereas, thermonuclear verdicts—those over $100 million—grew by 35% in 2023.

Defective products are the biggest contributor of these, making up over 40% of total liability claim costs in the past 5 years. People are paying attention to recalls, lawsuits, and corporate responsibility. This shift leads to more legal action and greater accountability.

As consumers demand safer products, courts are responding with major verdicts. Companies face rising risks when safety is neglected. These outcomes signal that victims and the public are pushing for better standards.

FAQs

What is the tort of defective products?

The tort of defective products, also known as product liability, holds manufacturers, distributors, or sellers legally responsible when a product causes harm. This harm can be due to a design flaw, manufacturing defect, or inadequate warning. Victims can seek compensation for injuries or damages caused.

How do you prove a product is defective?

To prove a product is defective, you must show it had a design flaw, manufacturing error, or lacked proper warnings. It should clearly show that the defect directly caused injury or harm during normal use. Evidence may include expert testimony, product testing, and medical or incident reports.

What is strict liability for defective products?

Strict liability for defective products holds manufacturers or sellers legally responsible for injuries caused by a defective product, regardless of fault or negligence. If the product is proven defective and causes harm during proper use, the injured party can claim compensation under strict liability.

Defective products affect more people than most realize. These failures often involve trusted brands and everyday household items.

Lawsuits push companies to take responsibility. They drive change in how products are made, tested, and labeled. Legal outcomes send a message that safety can’t be compromised. If a product causes harm, it’s not just a personal issue—it’s a public concern.

Stay informed. Report unsafe products. If harmed, seek legal guidance. Holding companies accountable protects everyone.

also read,Recycling Stainless Steel Scrap: Guide to Find the Right Recycler