Abbott Labs to pay nearly $385M in case over bacterial contamination at plant
Summary
Abbott Laboratories will pay nearly $385 million to settle a lawsuit over bacterial contamination at its baby formula plant in Michigan. The Justice Department closed a criminal investigation and resolved the case as a civil matter under the False Claims Act.Key Facts
- Abbott’s plant in Michigan had Cronobacter bacteria contamination affecting powdered baby formula.
- The company agreed to pay $385 million to settle the civil lawsuit.
- The Justice Department ended a related criminal investigation earlier this year.
- The civil case claimed Abbott sold formula made in unsafe conditions that risked contamination.
- Government tests on unopened formula from affected infants’ homes found no bacterial contamination.
- Abbott said the settlement does not admit any fault or wrongdoing.
- The Justice Department said Abbott failed to fix roof leaks and sometimes avoided testing that could show contamination.
- Some lawmakers questioned the Justice Department's decision to close the criminal case and rely on a civil settlement.
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