Abbott to pay almost $385M in DOJ settlement over infant formula plant allegations

North Carolina settled with Abbott Laboratories for $384M over contaminated baby formula, part of a broader agreement with 39 states and the federal government. Abbott, which produces over 40% of U.S. formula, was accused of selling unsafe products and concealing test results. The recall caused a 2022 shortage. North Carolina's share is $216K, earmarked for Medicaid and nutrition programs.

Abbott Laboratories will pay $385M to resolve allegations of tainted infant formula. The settlement includes $348.7M to the federal government and $35.5M to state Medicaid programs. California's share is over $15M. The allegations span 2018-2022, involving production conditions that risked microorganism contamination. Abbott recalled several formula brands in 2022, leading to a nationwide shortage.

Abbott Laboratories agreed to pay $384.9M to settle a DOJ case over a 2022 infant formula outbreak. The settlement doesn't determine liability. Pending lawsuits remain. No specific company was named in an E. coli and Salmonella outbreak linked to seed supplier Everything Sprouts LLC. Italy's hepatitis A outbreak affected 130 people, possibly from bivalve mollusks. UK small businesses show good food safety practices but low awareness of food crime.

Colorado will receive nearly $2 million from Abbott Laboratories as part of a $348 million settlement over allegations of misrepresenting the safety of its infant formula, with additional $35.5 million to be split among states. The lawsuit claimed Abbott failed to maintain safety standards and disclose contamination test results. The funds will be returned to Colorado's Medicaid program.

Abbott Laboratories (ABT) will pay $384 million to settle a lawsuit alleging it failed to maintain safety standards in its baby formula manufacturing facilities from 2018 to 2022, according to New York Attorney General Letitia James. The settlement includes $348 million to the federal government and $35 million to a coalition of states, with New York receiving $9.3 million. The lawsuit claimed Abbott's practices put products at risk of contamination and misled safety inspectors.

Abbott Laboratories (NYSE: ABT) reported Q2 2026 sales of $12.6B, up 13%, and raised its full-year adjusted EPS forecast to $5.45-$5.60. Analysts are bullish, citing growth in its Medical Devices segment and recent acquisitions. The stock has 21 'buy' ratings with target prices up to $143. Abbott's dividend history and growth prospects are key attractions for investors.