The legal action has already drawn support from eight families who say their babies were affected after consuming recalled formula, with Foodwatch expecting additional families to join. The case centers on alleged contamination with cereulide, a heat-stable toxin that has led to recalls of infant formula products in more than 60 countries since late 2025. Recalls expanded across multiple brands and markets as manufacturers withdrew products believed to pose health risks.

Foodwatch director Ingrid Kragl sharply criticized the companies for what she called “enormous negligence” and delayed recalls, accusing them of minimizing risks and failing to act with urgency despite emerging evidence of contamination. The complaint asserts that manufacturers failed to uphold their legal obligations to ensure product safety, and calls for investigations into potential offences such as endangering infant health, aggravated deception, marketing harmful products and delayed recalls.

Industry impacts have been significant: Nestlé’s share price dropped nearly 10% in January, while Danone’s stock slid about 4%, reflecting investor concern over potential liabilities and reputational damage. Analysts estimate Nestlé’s financial exposure could reach up to €1 billion, although the company maintains the recall represents a small portion of its annual revenue and disputes claims that it failed to act responsibly. Lactalis and Danone have stated they acted on official guidance, highlighting differing narratives between industry and watchdog groups.