Abbott agrees to settlement over closure of largest baby formula plant in the US
Summary
Abbott Laboratories will pay $385 million to settle claims related to the 2022 recall of baby formula from its largest U.S. plant in Michigan. The recall led to shortages and was investigated by the Justice Department, but Abbott says the settlement does not mean it admitted any wrongdoing.Key Facts
- Abbott agreed to pay $385 million to settle lawsuits linked to a 2022 baby formula recall.
- The recall happened after problems at Abbott’s Sturgis, Michigan plant, the largest baby formula factory in the U.S.
- The Justice Department and several states filed lawsuits over the recall and contamination concerns.
- The company said unopened formula tested negative for a harmful bacterium called Cronobacter sakazakii.
- Abbott closed the Michigan plant in February 2022 but reopened it by June the same year.
- The Justice Department under President Trump ended its criminal investigation of the case.
- The 2022 formula shortage led the Biden administration to ease import rules and take emergency steps to increase supply.
- The recall affected well-known brands, including Similac, and worsened supply shortages caused by COVID-19 disruptions.
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