Abbott Laboratories has agreed to pay more than $384 million to settle allegations that it knowingly manufactured infant formula in environments that posed a substantial risk of contamination, then sold the products to federal and state programs, the U.S. Justice Department said. The deal resolves claims Abbott knew conditions and manufacturing processes at its Sturgis, Michigan, and Casa Grande, Arizona, formula production plants increased the risk of contamination, but failed to test the products or properly alert regulators to positive tests. According to the department, the products were paid for with USDA and Medicaid funds. The USDA and state Medicaid funds subsidize the cost of baby formula for eligible families. The settlement included no finding of liability, and the company did not admit wrongdoing. The department closed a related criminal investigation, Abbott said in a statement. The lawsuit followed a February 2022 recall of Abbott baby formula products after complaints that they were contaminated with Cronobacter. Abbott recalled infant formula products such as Similac, Alimentum, and EleCare, and closed its Michigan Sturgis plant in 2022 after investigators found traces of Cronobacter there. Four baby illnesses linked to consuming the products were reported. The recall and plant closure worsened a national baby formula shortage that began with pandemic supply chain issues. Abbott said that no unopened, distributed Abbott infant formulas have ever tested positive for Cronobacter. @ https://www.reuters.com/legal/litigation/abbott-pay-384-mln-over-contaminated-infant-formula-allegations-us-justice-dept-2026-09-14/
