ABT · News · 20260930N
Infant Formula Litigation
ABBOTT LABORATORIES · 2026-09-30 · Importance 46 · Surprise 42 · In source text
Abbott agreed to a national False Claims settlement of approximately $384 million to resolve allegations involving infant formula and nutritional therapy products manufactured under allegedly unsanitary conditions. The allegations included microorganism-contamination risks, failure to disclose test results to the FDA, and claims that products were sold to government health programs despite safety deficiencies. Mississippi is expected to receive approximately $771,433, while Abbott reportedly did not admit liability. The settlement is material relative to the company’s $23.757 billion revenue threshold and represents ongoing legal and regulatory exposure related to infant formula manufacturing.
Key facts
- Mississippi Attorney General Lynn Fitch announced a $384 million settlement with Abbott Laboratories over allegations regarding infant formula and nutritional therapy products manufactured in plants that failed safety standards. source
- WJTV reported Mississippi is set to receive $771,432.52 from Abbott Laboratories as part of a $385 million national settlement addressing allegations of unsanitary manufacturing that led to contaminated powdered baby formula and a nationwide shortage in 2022. source
- Mississippi will receive $771,432.52 from the settlement with Abbott Laboratories. source
Impact estimates
| metric | direction | stage | expected | basis |
|---|---|---|---|---|
| net_income | negative | committed | -1.4% | Mississippi Attorney General Lynn Fitch announced a $384 million settlement with Abbott Laboratories over allegations regarding infant… |
| liability | negative | committed | -0.3% | Mississippi Attorney General Lynn Fitch announced a $384 million settlement with Abbott Laboratories over allegations regarding infant… |