Abbott Laboratories agreed to pay nearly $385 million to settle a civil False Claims Act case with the Justice Department over bacterial contamination at its baby formula plant in Sturgis, Michigan. The plant closure in 2022 led to significant supply shortages, impacting several infant formula brands like Similac. Federal prosecutors had initially sought felony charges but were ultimately directed by senior DOJ leadership to pursue a civil resolution instead. Tests conducted by government regulators on unopened products from homes of infants involved during the recall found no presence of Cronobacter sakazakii, a bacterium harmful to babies. The settlement, which does not admit fault or liability, also resolves lawsuits filed by relators and attorneys general of several states.
