Michigan News

Abbott to Pay $385 Million to Resolve Claims Over Michigan Formula Plant

(Photo supplied / AP News)

STURGIS, Mich. (AP) — Abbott Laboratories will pay $385 million to resolve claims related to an investigation into contamination at its infant formula plant in Sturgis, Michigan.

The settlement involves claims tied to the 2022 recall of powdered infant formula produced at the facility, which contributed to a nationwide shortage of infant formula. The recall included several brands, including Similac.

Abbott said Monday that the settlement does not constitute an admission of fault or liability. The agreement also resolves lawsuits filed by certain whistleblowers and attorneys general from several states.

Abbott said government testing of unopened formula samples collected from the homes of infants involved in the investigation was negative for Cronobacter sakazakii, a bacteria that can cause serious illness in infants.

The company also said no unopened Abbott infant formula that had been distributed to consumers has ever tested positive for the bacteria.

The U.S. Justice Department’s criminal investigation into the matter has been closed.

The Food and Drug Administration began investigating the Sturgis facility in early 2022. Abbott temporarily closed the plant in February 2022 and recalled powdered formula produced there. The facility reopened in June of that year.

The recall and plant shutdown contributed to shortages that were already being affected by supply chain disruptions and increased demand during the COVID-19 pandemic.

The settlement also resolves claims brought by the Justice Department and certain state attorneys general and relators.

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