Abbott Laboratories agreed to pay $384,999,040 to settle False Claims Act allegations that it knowingly manufactured infant formula in unsafe conditions and sold it to federal and state programs, according to a DOJ announcement on Sept. 14, 2026 [1]. The settlement covers $348,700,868 to the United States and $36,298,172 to state Medicaid and WIC programs, with Connecticut receiving $936,629.70, as detailed by the Connecticut Attorney General’s office [2]. Abbott’s facilities in Sturgis, Michigan, and Casa Grande, Arizona, allegedly operated in environments that increased the risk of microorganism contamination, and the company failed to test or disclose positive results during FDA inspections in 2019 and 2022, the DOJ said [1]. The company did not admit wrongdoing and no finding of liability was made, the DOJ noted, while the settlement also provides $69 million to relators who brought the qui tam action [1]. The case stems from a 2022 recall of Abbott infant formula after bacterial contamination was detected, which led to the closure of the Michigan plant and contributed to a national formula shortage, according to the DOJ release [1]. The False Claims Act claims cover the period from Jan. 1, 2018 to Dec. 31, 2022, when Abbott allegedly misrepresented compliance with federal and state requirements, prompting the federal and state governments to purchase non‑compliant products, the CT AG said [2]. The settlement is part of a coordinated effort by the Justice Department’s...
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