Abbott to Pay About 385 Million Dollars to Settle US Infant Formula Lawsuit

Abbott Laboratories has reached a settlement agreement with the US Department of Justice, agreeing to pay about 385 million dollars to resolve allegations of legal violations related to its 2022 infant formula. Abbott is the largest infant formula manufacturer in the United States.

The Department of Justice said Abbott's facility in Sturgis, Michigan, failed to meet regulatory requirements in producing infant formula, and was accused of deliberately avoiding testing for bacterial growth and of not disclosing contamination to the US Food and Drug Administration when it was detected. Under the settlement, Abbott will pay the US government 348.7 million dollars to resolve claims under the False Claims Act, and a further 36.29 million dollars to certain state Medicaid programs and the federal Special Supplemental Nutrition Program for Women, Infants, and Children.

Abbott said that after years of investigation, scientific review, and testing, the facts are clear: there is no evidence that its formula caused the illnesses or deaths that triggered the 2022 recall, and neither testing nor genetic sequencing found any link between its formula and the reported illnesses.