ABT · News · 20260915N
Infant Formula Regulatory Case
ABBOTT LABORATORIES · 2026-09-15 · Importance 40 · Surprise 42 · In source text
Abbott agreed to pay approximately $385 million to resolve U.S. Department of Justice allegations related to contaminated infant formula produced at its Michigan and Arizona facilities. The investigation followed the 2022 closure of Abbott’s largest infant-formula plant and includes $69 million for three whistleblowers under a False Claims Act settlement. The agreement closes a related criminal investigation, but Abbott continues to face infant-formula litigation, including a $495 million jury award affirmed on appeal.
Key facts
- Abbott Laboratories has agreed to pay $385 million to resolve allegations stemming from a 2022 infant formula contamination investigation that led to the closure of its largest plant. source
- Abbott Laboratories has agreed to pay over $384 million to settle U.S. Justice Department allegations regarding contaminated infant formula production at its Michigan and Arizona facilities. source
- The agreement announced by the Justice Department resolves False Claims Act claims without an admission of fault from Abbott. source
- The settlement resolves civil claims and closes a related criminal investigation. source
- Three Abbott employees who filed a whistleblower lawsuit will receive $69 million from the settlement. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| operating_income | negative | committed | -1.4% | Abbott Laboratories has agreed to pay $385 million to resolve allegations stemming from a 2022 infant formula contamination investigation… |
| liability | negative | committed | -0.3% | Abbott Laboratories has agreed to pay $385 million to resolve allegations stemming from a 2022 infant formula contamination investigation… |