Abbott Laboratories agrees to pay more than $384 million to settle infant formula allegations

Abbott Laboratories agreed to pay $385M to settle allegations of selling contaminated infant formula to government programs, contributing to the 2022 formula crisis. The settlement resolves False Claims Act allegations but does not establish a consumer claims process. The Justice Department emphasized the importance of adhering to health and safety standards for infant formula.

Abbott Laboratories will pay $385 million to settle contamination claims related to its Sturgis, Michigan, baby formula plant. The settlement resolves lawsuits from the Justice Department and multiple states. Abbott denies liability. The plant, which makes Similac, was closed in 2022 and reopened later that year, impacting U.S. formula supply.

Abbott Laboratories will pay $385 million to settle U.S. claims over alleged poor manufacturing practices at its infant formula facilities, including a plant in Michigan linked to a 2022 recall and nationwide shortage. The settlement resolves allegations of unsanitary conditions and contamination risks, though Abbott denies liability. The company will pay $348.7 million to the U.S. and $36.3 million to states, with whistleblowers receiving $69 million. This follows a separate $670 million settle

Abbott Laboratories will pay $384M to settle allegations of unsafe manufacturing conditions for baby formula and nutritional products. Oregon receives $977,558. The settlement covers violations from 2018-2022, with Abbott paying $348.7M to the federal government and $35.5M to 39 states for Medicaid claims. The affected products were sold through government assistance programs like WIC and Medicaid.

Abbott Laboratories will pay $385 million to settle U.S. and state allegations regarding manufacturing practices at its Michigan and Arizona facilities from 2018 to 2022, according to the DOJ. The settlement resolves claims of false submissions to government programs due to alleged contamination risks and inadequate testing. Abbott will pay $348.7 million to the federal government and $36.3 million to states. Three whistleblowers will receive $69 million.

Abbott Laboratories (ABT) will pay $384 million to resolve U.S. Justice Department allegations regarding infant formula production. The settlement addresses civil claims and closes the criminal investigation, but litigation risks persist. Abbott's Q2 2026 sales were $12.6 billion, with adjusted EPS guidance of $5.45-$5.60. The company aims to refocus on broader growth despite ongoing reputational and legal concerns.