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Abbott Laboratories agreed to pay $385 million to resolve federal allegations related to the contamination at its Sturgis, Michigan infant formula plant in 2022. The settlement addresses claims under the False Claims Act without admitting fault. Four infants fell ill and two died after consuming contaminated formula from the facility, which was closed due to safety violations including roof leaks and malfunctioning equipment. Three former employees filed a whistleblower lawsuit against Abbott, leading to Monday's agreement where they will receive $69 million of the settlement amount.
Written locally by qwen2.5:14b on 2026-09-15,
using this article's own text rather than the other coverage of the
same event (that is the story summary below).
Story summary
Abbott Laboratories, a major baby formula manufacturer, agreed to pay $385 million to settle civil False Claims Act cases with the U.S. Justice Department and several states over bacterial contamination at its largest plant in Sturgis, Michigan. The settlement resolves claims that powdered infant formula made at this facility was contaminated with Cronobacter bacteria during manufacturing, posing a risk to public health. This case followed a 2022 recall of Abbott's products after four infants fell ill from consuming the formula manufactured there. The Justice Department initially sought felony charges but later opted for a civil resolution under pressure from senior leadership. Despite this settlement, Abbott maintains it did not admit liability or fault and emphasizes no unopened distributed product tested positive for bacteria. The plant closure exacerbated existing supply shortages caused by disruptions during the COVID-19 pandemic.
Written for “Abbott Formula Settlement” on 2026-10-05,
grounded in this article and the 4 other(s) covering the same event.
U.S. healthcare company Abbott Laboratories has agreed to pay $385 million to resolve allegations stemming from an investigation that led to the closure of its largest infant formula plant over contamination concerns, worsening a national supply shortage in 2022.
asserted
that → agree → 2022
The Justice Department announced the agreement Monday, saying it resolves claims brought against the company under the False Claims Act without any admission or finding of fault or liability against Abbott.
uncertain
it → announce → Abbott
"Nothing matters more than the safety and quality of Abbott's products," the company said in a statement announcing its settlement.
asserted
company → matter → settlement
"We make infant formula with the same care we would for our own families and are deeply committed to earning and maintaining caregivers' trust.
asserted
we → make → trust
As we move forward Abbott remains focused on serving the families who depend on us every day."
asserted
who → move → us
Abbott subsidiary Abbott Nutrition's plant in Sturgis, Mich., is the largest in the nation and came under federal investigation after four infants fell ill with Cronobacter sakazakii, a rare bacterium that contaminates dry foods, after consuming baby formula manufactured at the plant.
asserted
that → come → plant
The investigation uncovered issues such as roof leaks and faulty equipment that increased the risk of products being contaminated, leading to recalls and the plant's shuttering in February 2022, which further strained baby formula supplies already stressed by the COVID-19 pandemic.
asserted
which → uncover → pandemic
While Abbott states no unopened, distributed Abbott infant formula tested positive for Cronobacter sakazakii, the Food and Drug Administration said five environmental subsamples collected from the plant tested positive for the bacteria.
asserted
subsamples → state → bacteria
The outbreak involved four confirmed cases and two deaths, with the Centers for Disease Control and Prevention saying Cronobacter infections may have been a contributed to the deaths of the two infants.
uncertain
infections → involve → infants
In October 2022, three employees filed a qui tam False Claims Act lawsuit against Abbott on behalf of the government, with the United States partially intervening in the whistleblower case in 2025 and filing its own complaint in intervention that November, resulting in Monday's settlement agreement.
uncertain
States → file → agreement
According to the agreement, Abbott will pay more than $384 million plus interest to the U.S. government and Medicaid-participating states, of which three Abbott employees will receive $69 million as their share of the federal settlement.
uncertain
employees → accord → settlement
"No company should be gambling on the health and safety of our nation's infants by allowing unsanitary conditions to persist at a facility manufacturing baby formula," Associate Attorney General Stanley Woodward Jr. said in a statement.
asserted
Jr. → gamble → statement
"The department will hold accountable bad actors that knowingly misrepresent compliance with essential health and safety standards designed to protect American families."
asserted
that → hold → families
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