Consumer goods giant Reckitt Benckiser Group Plc tumbled on Monday amid concerns about potential litigation.
At 0910 BST, the shares were down 8.9% at 4,085p, after a US jury found on Friday that infant formula by Abbott Laboratories had caused a girl to develop a dangerous bowel disease. Abbott was ordered to pay $495m in damages. This consisted of $95m compensatory damages and $400m punitive.
Jefferies said in a research note: "This is likely to depress sentiment on the risk for both cited defendants (Reckitt and Abbott) in these claims, we think.
"RKT share price we estimate is already discounting for circa £3/$3.5bn of liability risk next year. But with its own new individual trial due to start on 30 September and multi-district litigation class action gaining momentum, that risk may be extended this week we think."
Jefferies pointed out that the $495m award against Abbott in the latest NEC (necrotizing enterocolitis) case on Friday follows the $60m award against Mead Johnson - which is the Reckitt Nutrition subsidiary - in March.