Abbott Laboratories has agreed to a $385 million settlement to resolve U.S. Government allegations regarding manufacturing practices at its facilities, including its plant in Sturgis, Michigan.
True
Abbott Laboratories agreed to pay $385 million to settle allegations regarding false claims about infant formula.
FactVerify
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At a glance
Verified September 15, 2026Key Evidence
Abbott Laboratories agreed to a $385 million settlement to resolve federal allegations related to manufacturing practices at its facilities.
The settlement does not constitute an admission of liability by the company.
The agreement follows a 2022 infant formula recall and plant closure in Sturgis, Michigan, which was attributed to unsanitary conditions and safety issues.
The reporting
What the Evidence Shows
Abbott Laboratories reached a settlement agreement on September 15, 2026, to pay $385 million to resolve claims related to its infant formula production. The agreement addresses allegations under the False Claims Act concerning poor manufacturing practices at two company facilities, notably the plant in Sturgis, Michigan, which previously faced scrutiny following a 2022 recall.claimsjournal.comclaimsjournal.comAbbott to Pay $385 Million to End US Claims Over Infant FormulaFinancial Breakdown: $348.7 million will be paid to the United States to resolve False Claims Act allegations $36.3 million (approximately) will be paid to various states to settle claims related to Medicaid and WIC programs As part of the...
wtvbam.comwtvbam.comSturgis baby formula factory agrees to pay $385 million settlementImpact: The issues at the Sturgis, Michigan plant—which included findings of roof leaks, standing water, and inadequate safety testing—led to a temporary facility closure and a nationwide infant formula shortage in 2022 As part of the... The issues identified at the Michigan plant included findings of inadequate safety testing, standing water, and roof leaks, which contributed to a temporary closure and a nationwide shortage of infant formula in 2022.+1 more
As part of the settlement terms, approximately $348.7 million of the total amount is designated to satisfy U.S. Government claims. Abbott has stated that this settlement does not constitute an admission of fault or liability.cbsnews.comcbsnews.comBaby Formula Abbott Labs Civil Case Michigan PlantCompany Stance: Abbott stated that the settlement does not represent an admission of fault or liability The company also noted that government tests of unopened formula from the homes of infants investigated during the 2022 recall were...
google.comgoogle.commedpagetoday.comCompany Stance: Abbott stated that the settlement does not represent an admission of fault or liability The company also noted that government tests of unopened formula from the homes of infants investigated during the 2022 recall were...+1 more
The company also emphasized that government tests conducted on unopened formula samples from the homes of infants investigated during the 2022 recall did not detect the presence of Cronobacter sakazakii.google.comgoogle.comfox6now.comThe company also noted that government tests of unopened formula from the homes of infants investigated during the 2022 recall were negative for Cronobacter sakazakii This legal resolution is distinct from other ongoing or concluded litigation, such as the $670 million settlement reached in August 2026 involving separate allegations regarding formula for premature infants.
google.comgoogle.comtopclassactions.comThis settlement is distinct from other legal actions involving Abbott, such as the $670 million settlement reached in August 2026 regarding separate allegations that its formula for premature infants caused a dangerous intestinal disease+1 more
Primary trail
Verified Sources8
Open source
Abbott Hit with Almost 390 Million to Settle False Claims Allegation About...Primary Source Extraction
Verified Document Excerpt
"“Today the Justice Department found $385 million worth of accountability for how infant formula was made between 2018 and 2022. Every dollar of it is backward-looking, and not one dollar of it requires anyone to run a single additional test tomorrow. Congress can do that part. It has had a bill since March,” Marler said. On Nov. 13, 2025, the United States filed its Complaint in Intervention alleging that Abbott caused government programs to purchase powdered infant formula manufactured at the Sturgis facility despite the products’ failure to meet statutory, regulatory and contractual requirements. The Complaint alleged that Abbott knowingly manufactured infant formula purchased with taxpayer dollars in an environment that put the products at unacceptable risk of microorganism contamination and significantly impacted the products’ reliability, quality and safety."