$385 Million Settlement with Abbott Over Infant Formula Allegations
Abbott Laboratories has agreed to pay nearly $385 million to settle allegations related to the quality and safety of its powdered infant formula products. The settlement, announced in September 2026, resolves federal and state False Claims Act (FCA) claims that Abbott failed to meet manufacturing standards for formulas produced at plants in Sturgis, Michigan, and Casa Grande, Arizona. These violations led to a temporary plant closure in 2022, causing nationwide formula shortages and triggering a federal investigation. The case was brought by three former Abbott employees who reported concerns about public health risks associated with the company's manufacturing practices. The lawsuit alleged that Abbott sold products not compliant with FDA regulations, increasing contamination risks. These formulas were purchased using government funds through programs like WIC, which covers over half of all infant formula sales in the U.S. The settlement marks a significant use of the FCA to address issues within the infant nutrition sector and underscores the importance of compliance for products funded by taxpayer dollars.
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Topics: Abbott Laboratories False Claims Act infant formula whistleblower case WIC program