ABT · News · 20260922N

Infant Formula Litigation

ABBOTT LABORATORIES · 2026-09-22 · Importance 53 · Surprise 60 · In source text

Abbott agreed to pay approximately $385 million to resolve U.S. Department of Justice, federal, and state allegations concerning unsanitary conditions and false claims at infant-formula facilities. The settlement includes $348.7 million for the federal government and $35.5 million for state Medicaid programs, including more than $15 million for California. The allegations covered production between 2018 and 2022 at Abbott’s Sturgis, Michigan facility and followed a product recall and national infant-formula shortage in 2022.

Key facts

• Abbott Laboratories has agreed to pay $385 million to resolve state and federal civil allegations that it produced powder infant formula under unsafe conditions and made false claims. source
• A "multi-million dollar settlement by Abbott Laboratories" has prompted a renewed push in New York to pass a bill setting state standards for testing baby food and infant formula. source
• The proposed bill would require QR code labels for chemical levels in baby food and infant formula. source
• The settlement includes $348.7 million for the federal government and $35.5 million for state Medicaid programs. source
• Abbott Laboratories has agreed to pay nearly $385 million to settle allegations from the Department of Justice regarding unsanitary conditions at two of its infant formula plants. source
• State Senator Michelle Hinchey is the sponsor of the "Baby Food and Infant Formula Safety and Transparency Act." source
• Governor Kathy Hochul's office stated she will review the bill. source
• The agreement stems from allegations between 2018 and 2022 concerning contamination risks at Abbott's Sturgis, Michigan facility, which led to a product recall and national formula shortage in 2022. source

Impact estimates