Ticker: Baby formula company pays $385M; Amazon suspends use of 21 Air

Abbott Laboratories agreed to pay $385M to settle allegations of quality and safety issues in its infant formula and nutritional products, according to a complaint filed by whistleblowers represented by Stein Mitchell Beato & Missner LLP. The settlement resolves False Claims Act allegations related to products manufactured at Abbott's Sturgis, Michigan, and Casa Grande, Arizona, plants between 2018 and 2022. The whistleblowers will receive $69M from the settlement.

Abbott Laboratories will pay $385 million to resolve claims related to contamination at its Michigan infant formula plant, including a 2022 recall. The settlement does not admit fault. The plant's closure contributed to a nationwide formula shortage. The DOJ's criminal investigation has closed. Abbott's Similac brand was among those recalled.

Abbott Laboratories agreed to pay $385 million to settle a civil case with the Justice Department over bacterial contamination at its Michigan plant. The case alleged unsanitary conditions and quality issues in its powdered baby formula. The company denies fault, and the criminal investigation was closed. Senator Adam Schiff has questioned the DOJ's priorities in the matter.

Abbott Labs will pay $385M to settle claims related to contamination at its Sturgis, MI baby formula plant, which led to 2022 supply shortages. The DOJ and states sued over the recall of brands like Similac. Abbott denies fault. The plant reopened after a temporary closure. The Biden administration took steps to ease the shortage. (ABT)

Abbott Laboratories (ABT) stock rose 1.2% after settling a $385M DOJ case related to infant formula, with no liability admitted. The settlement removed a legal overhang, boosting investor sentiment ahead of earnings. ABT's intraday high was $104.44. The move contrasted with broader market declines.

Abbott Laboratories will pay $384 million to resolve allegations over contaminated infant formula, according to the U.S. Justice Department. The settlement addresses claims related to product contamination. Abbott is a publicly traded company (NYSE: ABT).