Abbott Laboratories to pay $385 million over baby formula contamination

Health

Aol

Abbott Laboratories agreed to pay nearly $385 million to resolve a civil False Claims Act case with the Justice Department and several states after Cronobacter bacterial contamination at its Sturgis, Michigan powdered infant formula plant. Federal prosecutors had sought felony charges but senior Justice Department leaders would not allow the criminal case to proceed and the department closed that probe. The Justice Department alleged unsanitary conditions, failure to fix roof leaks, avoidance of testing, and nondisclosure of micro contamination to the Food and Drug Administration in 2019 and 2022; Abbott said the settlement is not an admission of fault and government tests of unopened recalled products were negative.

Abbott will pay nearly $385 million to settle contamination claims