Who Gets the $384M Settlement from Abbott's Tainted Baby Formula?
Summary
Abbott Laboratories will pay nearly $385 million to settle claims that it sold contaminated infant formula to government programs, contributing to the 2022 formula shortage. The company agreed to the settlement without admitting guilt.Key Facts
- Abbott will pay $384,999,040 to resolve allegations under the False Claims Act related to contaminated infant formula.
- The contaminated formula was produced at Abbott’s Michigan and Arizona facilities, especially at the Sturgis, Michigan plant between 2018 and 2022.
- The Justice Department said the Sturgis plant had roof leaks and equipment defects that increased contamination risk.
- Abbott allegedly continued to operate equipment with cracks and pits and extended production runs between cleanings.
- Some contamination test results were not reported to regulators as required.
- The contaminated formula was sold to federal and state programs like WIC and Medicaid, which buy over half of the infant formula in the U.S.
- The formula crisis caused major nationwide shortages in 2022, affecting many families.
- The settlement includes $348.7 million to the federal government and $36.3 million to states’ Medicaid and WIC programs.
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