Abbott to pay US$385 million in US settlement over contaminated infant formula allegations
Unsanitary conditions at firm’s Michigan plant include roof leaks and inadequate cleaning procedures
Leading infant formula company Abbott will pay nearly US$385 million to settle allegations that its Sturgis, Michigan plant manufactured products that did not meet safety standards. The US Justice Department announced the settlement on Monday (Sep 14), following years of scrutiny of the facility, which produces a significant portion of the US' formula supply.
In 2022, Abbott initiated a recall of powdered formulas produced at the plant after federal health officials linked the products to four infants hospitalised with rare bacterial infections, two of whom died. The recall led to a nationwide shortage of infant formula for months.
Abbott did not admit liability or fault in the settlement, stating that "no unopened, distributed Abbott infant formulas have ever tested positive" for the bacteria that sickened the babies. The federal government's complaint alleged unsanitary conditions at the Michigan plant, including roof leaks, deteriorating equipment, and inadequate cleaning procedures.
Instead of fixing the roof leaks, Abbott installed umbrellas, creating a wet environment that fostered bacterial growth. The plant's spray dryers, used to convert liquid formula into powder, had cracks and pits that increased the risk of contamination. Abbott also allegedly chose not to test for bacterial contamination and withheld positive test results from the US Food and Drug Administration.
The settlement will distribute funds to the federal government, state Medicaid, and the federal nutrition programme for women, infants, and children. Three whistleblowers who first reported the plant's issues will receive US$69 million. Abbott has a history of prioritising safety and compliance in its plants, according to a 2022 statement.
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