From being one of the hottest properties in the market pre-pandemic, and having had a ‘good crisis’ as it were thanks to its hygiene division, global personal and household products group Reckitt Benckiser (RKT) now finds itself in the investment equivalent of the bargain bin.

Shares in the Nurofen-to-Airwick-maker hit a new 10-year low this week after investors reacted badly to a US court ruling against rival infant formula-maker Abbott Laboratories (ABT:NYSE).

A Missouri court ordered the US pharma giant to pay $495 million in damages to a woman who claimed its formula caused her daughter to develop a dangerous bowel disease.

The case is one of almost 1,000 filed against Abbot Labs and Enfamil-maker Reckitt in recent years.

In March this year, Reckitt shares plummeted 15% in a day after a US jury awarded another plaintiff $60 million in damages, a verdict the firm is contesting.

Analysts at JPMorgan said based on previous litigation cases involving talc and opioids the settlement could imply a total settlement cost to the UK firm of between $500 million and $1.5 billion.

The news was a double blow to investors after Reckitt shares rallied last week on a promise to streamline its business.

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