Abbott Labs to pay nearly $385M in case over bacterial contamination at plant
The case stems from a Cronobacter bacterial contamination at one of Abbott Laboratories' Michigan plants.
Abbott Laboratories, a baby formula manufacturer, has agreed to pay nearly $385 million to settle a civil False Claims Act case brought by the Justice Department and several states. The agreement resolves claims that the company's Michigan plant, which produces powdered baby formula, was contaminated with Cronobacter bacteria during a 2022 recall.
The Justice Department had previously decided to close a parallel criminal investigation, despite evidence supporting felony charges, choosing instead to pursue a civil resolution. The company maintains that the settlement does not constitute a finding of fault or liability. The case highlights concerns about the company's failure to properly test for bacterial growth, test results being withheld from the FDA, and roof leaks being addressed with temporary solutions rather than fixes, all of which contributed to the contamination.
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