ABT · News · 20260914N

Infant Formula Litigation

ABBOTT LABORATORIES · 2026-09-14 · Importance 53 · Surprise 60 · In source text

Abbott agreed to pay approximately $384 million to resolve U.S. Department of Justice allegations and related federal and state lawsuits concerning its 2022 powdered infant-formula recall. The matter relates to manufacturing at Abbott’s Sturgis, Michigan facility and allegations involving Cronobacter sakazakii and Salmonella Newport; Abbott said the settlement does not constitute an admission of fault or liability. The DOJ criminal investigation has been closed, and government testing of unopened formula from infants’ homes was negative for Cronobacter sakazakii; the settlement creates a material legal cash cost and closes the previously disclosed investigation and claims.

Key facts

• Abbott Laboratories has agreed to pay over $384 million to resolve allegations concerning contaminated infant formula, according to the U.S. Justice Department. source
• Abbott Laboratories has agreed to pay $385 million to settle federal and state lawsuits related to the safety of its powdered infant formulas, which were recalled in 2022 due to contamination allegations. source
• The $385 million settlement addresses claims that conditions at Abbott's Sturgis, Michigan plant led to Cronobacter sakazakii and Salmonella Newport infections in infants. source
• Abbott has reached an agreement to resolve the previously disclosed investigation and lawsuit brought by the United States Department of Justice, as well as lawsuits filed by certain relators and the Attorneys General of several states, relating to Abbott's manufacturing and 2022 recall of powdered infant formula at its facility in Sturgis, Mich. source
• The $385 million settlement follows another recent $670 million agreement regarding allegations that Abbott's formula for premature babies causes a dangerous intestinal disease. source
• The government has closed its criminal investigation on this matter. source
• The settlement does not represent any finding of fault or liability. source
• Tests by government regulators of unopened product from the homes of the infants under investigation at the time of the 2022 recall were negative for Cronobacter sakazakii. source

Impact estimates