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Abbott Agrees to Settlement over Closure of Largest Baby Formula Plant in the US
The settlement resolves federal and state claims over contamination risks in powdered formula, with no finding of fault or liability.
On Monday, Abbott Laboratories agreed to pay $385 million to resolve federal and state lawsuits regarding the safety of its powdered infant formulas, though the settlement includes no finding of fault or liability.
Problems at the Sturgis, Michigan, facility prompted a 2022 recall and Justice Department lawsuit after the government alleged conditions included persistent roof leaks and cracks in spray dryers used for production.
The Centers for Disease Control and Prevention did not identify a definitive link between Cronobacter cases and the plant, yet Abbott noted government tests of unopened products were negative for Cronobacter and Salmonella Newport.
Acting Deputy Attorney General Trent McCotter called the agreement "a victory for American families", while Abbott stated it remains "deeply committed to earning and maintaining caregivers' trust".
This agreement follows a separate $670 million settlement regarding Abbott's formula for premature infants, while the Justice Department under President Donald Trump closed its criminal investigation into the contamination matter.
Abbott agreed to pay about $385 million to close allegations that she sold contaminated infant formula. Exclusive material for subscribers. To have full access, access the link of the material and register.