Abbott Laboratories to pay $385 million to settle U.S. claims over contaminated baby formula

Abbott Laboratories, a U.S. healthcare company, has agreed to pay $384,999,040 to settle allegations that it sold contaminated infant formula to government programs. The settlement, announced by the U.S. Justice Department, resolves claims under the False Claims Act. The allegations centered on Abbott's Sturgis, Michigan, plant, where unsafe conditions allegedly led to microbial contamination. This contributed to the 2022 nationwide formula shortage, which caused widespread panic among parents. The settlement includes payments to the federal government and participating states. Abbott denies wrongdoing, stating that no unopened distributed formula tested positive for the bacteria in question.