Saying that the nation’s food supply is non-negotiable, the Department of Justice announced a settlement with Abbott Laboratories for more than $384 million related to the 2022 infant formula crisis.

The company was linked to an outbreak of cronobacter infections that saw two infants die after consuming powdered infant formula products made by Abbott’s Sturgis, MI, production plant.The company’s recall of several brands and varieties of infant formula, including Similac, led to a severe nationwide shortage, including shortages of formula contracted by federal and state governments.

The settlement announced Sept. 14 resolves claims by the federal government related to allegations about false claims and is not a determination of liability on the part of the company. Numerous court actions brought by parents are pending.

The settlement relates to the fact that Abbott caused false claims to be submitted between Jan. 1, 2018, and Dec. 31, 2022, to federal and state programs arising from its failure to manufacture certain powdered infant formula and nutritional therapy products at its Sturgis, MI, and Casa Grande, AZ, facilities in compliance with federal and state statutory, regulatory and contractual requirements.

Under the civil settlement agreement, Abbott will pay $348,700,868 to the United States to resolve the False Claims Act allegations and an additional $36,298,172 to certain states for claims settled by their Medicaid and WIC programs.

The civil settlement also...

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