Abbott Agrees to $385 Million Formula Settlement

Abbott Laboratories will pay $385 million to resolve federal and state claims tied to its 2022 powdered infant formula recall and the closure of its Sturgis, Michigan, plant, the nation’s largest formula facility. Prosecutors alleged that Abbott submitted false claims for products made under conditions that posed contamination risks, citing problems including roof leaks, damaged equipment and inadequate safety practices. The recall involved brands including Similac and contributed to a nationwide formula shortage, prompting the government to expand imports and increase domestic production. Abbott denied fault, noting that the settlement contains no admission of liability and that testing found no definitive link between the Sturgis plant and reported infant illnesses; the company also said no unopened, distributed products tested positive for the bacteria under investigation. The criminal investigation was closed under current President Donald Trump, and the Sturgis facility reopened in June 2022.