Abbott to Pay $385 Million to Resolve Baby Formula Contamination Claims

By Katherine Hamilton

Abbott Laboratories agreed to pay about $385 million to resolve allegations that it sold contaminated baby formula.

The U.S. alleged that the healthcare company caused false claims to be submitted between January 2018 and December 2022, by causing state and federal programs to buy powder infant formula that was at risk of contamination.

Abbott allegedly made the formula at facilities in Sturgis, Mich., and Casa Grande, Ariz., where its manufacturing processes weren't meeting statutory, regulatory and contractual requirements, the Justice Department said.

The complaint alleged that Abbott knowingly made formula in an environment where contamination was possible. Roof leaks were common at the Sturgis plant, where water could drip over equipment, and Abbott used temporary solutions such as roof-leak umbrellas, according to the claims.

Abbott also allegedly used damaged spray dryers to turn liquid formula into powder, which the Justice Department said increased the risk of micro contamination.

The government has closed its criminal investigation into Abbott regarding the matter.

Abbott said that no unopened, distributed Abbott infant formulas have ever tested positive for Cronobacter sakazakii, a bacterium that can live in dry powder and cause life-threatening illnesses in newborns.

Abbott in 2022 recalled several major powdered infant formula brands that had been manufactured at the Sturgis site.

Abbott will pay $348.7 million to the U.S. to resolve the False Claims Act allegations, and $36.3 million to certain states over claims settled by their Medicaid and Women, Infants and Children (WIC) programs.

The settlement doesn't include any finding of fault or liability, Abbott said.

Write to Katherine Hamilton at katherine.hamilton@wsj.com

(END) Dow Jones Newswires

September 14, 2026 12:31 ET (16:31 GMT)