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2 clusters · 18 sources · 3 days · First seen · Last updated

Abbott Laboratories infant formula settlement

Overview

Abbott Laboratories has agreed to pay approximately $384–$385 million to resolve civil False Claims Act lawsuits brought by the U.S. Department of Justice and various state Attorneys General. The legal actions stem from investigations into manufacturing practices at company facilities in Sturgis, Michigan, and Casa Grande, Arizona, involving products manufactured between 2018 and 2022.

Authorities alleged that the company failed to comply with regulatory requirements regarding equipment maintenance and water control to prevent microorganism contamination, such as Cronobacter sakazakii. It was further alleged that Abbott failed to disclose certain contamination test results to the U.S. Food and Drug Administration. The settlement includes roughly $348.7 million for the federal government and approximately $35.5 million for participating states to address claims involving Medicaid and the Special Supplemental Nutrition Program for Women, Infants, and Children (WIC).

Abbott stated that the settlement does not constitute an admission of fault or liability, noting that regulators found no evidence of contamination in unopened products from infants involved in the investigation. The U.S. government has closed its parallel criminal investigation into the matter.

Entities

Abbott Laboratories · Cronobacter sakazakii · Food and Drug Administration · U.S. Department of Justice · Sturgis, Michigan

Timeline

  1. 7 days ago

    [BUSINESS] 4 sources
    Abbott Laboratories to pay $384 million in infant formula settlement

    Abbott Laboratories will pay over $384 million to settle allegations of manufacturing unsafe infant formula and submitting false claims to federal and state programs like Medicaid and WIC.

  2. 10 days ago

    [BUSINESS] 14 sources
    Abbott Laboratories to pay $385 million in baby formula contamination settlement

    Abbott Laboratories will pay $385 million to settle federal and state claims regarding contamination risks and manufacturing issues at its Sturgis, Michigan, baby formula plant in 2022.

Sources

abbott.mediaroom.com · baoquangninh.vn · cbsnews.com · claimsjournal.com · forbesliberia.com · hudsonvalleycountry.com · independent.co.uk · insurancejournal.com · offthepress.com · panoramafarmaceutico.com.br · srnnews.com · stocktitan.net · thebaynet.com · uticaphoenix.net · wrnjradio.com · wrrv.com · wsvn.com · wtop.com