TRENTON, N.J. — Abbott Laboratories has agreed to pay more than $384 million to settle allegations that the company caused false claims to be submitted to federal and state programs involving certain powdered infant formula and nutritional therapy products, New Jersey Attorney General Jennifer Davenport announced.
The Illinois-based health care company will pay $348.7 million to the federal government to resolve False Claims Act allegations and about $35.5 million to participating states for claims involving state Medicaid programs. New Jersey joined 39 other states and the federal government in the settlement.
“We have to protect New Jersey babies and their parents from a corporation that was willing to sell them risky infant formula they knew was being made in substandard facilities that were not following critical health and safety requirements,” said Attorney General Davenport. “These allegations are deeply troubling, particularly because products were purchased through taxpayer-funded programs as this company put its profits ahead of the safety of our children.”
The settlement resolves allegations involving products manufactured between Jan. 1, 2018, and Dec. 31, 2022, at Abbott facilities in Sturgis, Michigan, and Casa Grande, Arizona.
Federal and state authorities alleged Abbott failed to manufacture certain powdered infant formula and nutritional therapy products in compliance with statutory, regulatory and contractual requirements.
Authorities alleged Abbott...
TRENTON, N.J. — Abbott Laboratories has agreed to pay more than $384 million to settle allegations that the company caused false claims to be submitted to federal and state programs involving cert...