Jurors Reject Antitrust Case Against Maker of Baby Formula : Consumer products: Nestle brought suit to challenge Abbott Labs’ market dominance.

Abbott Laboratories this week won an antitrust case brought by Nestle Food Co. when a federal jury concluded that Abbott did not conspire to block competitors from the U.S. market for baby formula.

The verdict marks Abbott’s second victory during the past year in its battle to fend off a variety of charges related to its dominance of the U.S. baby-formula market. A federal judge last year cleared Abbott of similar antitrust charges brought by the Federal Trade Commission after a two-year investigation.

Nestle was seeking $250 million in damages in the suit filed in U.S. District Court in Los Angeles in May, 1993. Nestle, a unit of Switzerland’s Nestle, said it is “extremely disappointed” and will appeal the verdict, which was reached Monday.

“This was important in that it protects Abbott’s leading position in the formula market,” said Alex Zisson, an analyst at Hambrecht & Quist.

Abbott holds about half the U.S. market for baby formula, with brands including Similac and Isomil. The Abbott Park, Ill.-based health care products company last year had sales of about $980 million from infant formula, out of total revenue of about $9.16 billion.

Nestle, based in Vevey, Switzerland, is a worldwide maker of foods, beverages and milk products. It has about 5% of the U.S. baby-formula market but is a major marketer outside the United States.

In its suit, Nestle accused Abbott of conspiring with the American Academy of Pediatrics to create a “code of marketing practices” that discouraged direct advertising of baby formula, a blend of cow’s milk or soy product and vitamins that is often given to babies in place of mothers’ breast milk.

Nestle alleged that Abbott gives cash grants, free formula and other baby products to hospitals and physicians to induce them to endorse its formula to new mothers. The suit said the large sales force required for such marketing created a barrier to companies such as Nestle.

Abbott faces 23 other suits related to price fixing and allegations.