Abbott Laboratories to pay $384 million in infant formula settlement

Abbott Laboratories has agreed to pay more than $384 million to settle allegations regarding the manufacturing of certain powdered infant formula and nutritional therapy products. The settlement includes $348.7 million to the federal government to resolve False Claims Act allegations and approximately $35.5 million to participating states to address claims involving state Medicaid programs.

The legal action focused on products manufactured between January 1, 2018, and December 31, 2022, at Abbott facilities in Sturgis, Michigan, and Casa Grande, Arizona. Authorities alleged that the company failed to comply with statutory and regulatory requirements, specifically regarding the maintenance of manufacturing equipment and the control of water to prevent microorganism contamination. It was further alleged that Abbott failed to disclose certain contamination test results to the U.S. Food and Drug Administration during inspections.

New York is among the 40 states participating in the settlement, with more than $9.3 million allocated to the New York State Medicaid Program, including $5.3 million going directly to the state. The settlement involves products purchased through taxpayer-funded programs, including Medicaid and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).