Infant formula manufacturer Abbott Laboratories has entered into a settlement that will see them pay $384,999,040 to resolve a lawsuit brought against them by the U.S. Department of Justice.
According to a statement released Sept. 14 by the DOJ, the lawsuit was filed against Abbott in 2025 in relation to contaminated infant formula found at the company’s Sturgis factory.
The lawsuit claimed Abbott knowingly allowed the government to purchase contaminated formula for distribution through food assistance programs.
It also claimed Abbott failed to safely manufacture infant formula in accordance with state and federal laws and regulations, both at its Sturgis factory and at a factory in Casa Grande, Arizona. The suit alleged those actions caused false claims to be submitted to government programs from dates ranging from 2018 to 2022.
The DOJ suit alleged Abbott knowingly ignored safety issues like roof leaks and improperly cleaned equipment in order to maximize profit.
Abbott agreed to pay a lump sum of just under $385 million to resolve all allegations brought forth in the DOJ lawsuit and suits brought by other parties.
Per the terms of the settlement, Abbott did not admit any fault or liability regarding claims brought in the lawsuit.
