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News
Abbott Laboratories has agreed to pay approximately $385 million to resolve federal and state allegations that it manufactured infant formula in conditions posing a substantial contamination risk at its Sturgis, Michigan plant. The 2022 recall of brands like Similac — combined with pandemic-era supply chain disruptions — triggered a nationwide baby formula shortage. Abbott admitted no wrongdoing, and the Justice Department's related criminal investigation has been closed.
Abbott Laboratories has agreed to pay roughly $385 million to settle allegations that it knowingly manufactured infant formula in conditions that posed a substantial contamination risk at its Sturgis, Michigan and Casa Grande, Arizona facilities, then sold those products to federal and state programs including USDA and Medicaid. The settlement resolves claims brought by the Justice Department, state Attorneys General, and private relators — though Abbott admitted no wrongdoing and no finding of liability was made. The DOJ's related criminal investigation has since been closed.
The 2022 recall of Abbott products — including popular brands like Similac — compounded an already strained supply chain, triggering a nationwide baby formula shortage. The Biden administration responded by easing import rules, airlifting formula from Europe, and invoking emergency measures to boost domestic production. Abbott closed the Sturgis plant in February 2022 and reopened it by June of that year.
By the Numbers:
Why it matters: This settlement closes a major chapter in one of the most disruptive infant health supply crises in recent U.S. history, raising ongoing questions about manufacturing oversight and the resilience of the baby formula supply chain.
