Abbott Laboratories has agreed to pay $384,999,040 to resolve federal allegations that it caused false claims to be submitted to government programs for powdered infant formula and nutritional products made at its plants in Sturgis, Michigan, and Casa Grande, Arizona, the Justice Department announced on Monday. The claims cover the period from Jan. 1, 2018, through Dec. 31, 2022.
The case matters to families because of who paid for the formula. According to the Justice Department, more than half of all infant formula bought in the United States is paid for with U.S. Department of Agriculture funds through the Special Supplemental Nutrition Program for Women, Infants, and Children, known as WIC. State Medicaid programs also cover certain infant formula.
Abbott did not admit wrongdoing. The Justice Department said the claims resolved by the settlement are allegations only and that there has been no determination of liability. In a statement reported by UPI, the company said "nothing matters more than the safety and quality of Abbott's products."
The United States filed its complaint in the case on Nov. 13, 2025. According to the Justice Department, the complaint describes roof leaks as a common occurrence at the Sturgis plant, with water running and dripping over equipment. Instead of fixing the root causes, the government alleged, Abbott used temporary measures such as roof leak umbrellas to divert water in product...
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