Abbott Laboratories, an Illinois-based healthcare company that manufactures and sells infant formula and nutritional therapy products, has agreed to pay nearly $385 million to resolve allegations that it failed to manufacture certain powdered infant formula and nutritional therapy products in compliance with federal and state requirements, resulting in false claims being submitted to government programs.
The allegations involve products manufactured between Jan. 1, 2018, and Dec. 31, 2022, at Abbott facilities in Sturgis, Michigan, and Casa Grande, Arizona.
On Nov. 13, 2025, the United States filed a complaint in intervention alleging that Abbott caused government programs to purchase powder infant formula manufactured at the Sturgis facility despite the products’ failure to meet statutory, regulatory and contractual requirements. The complaint alleged that Abbott knowingly manufactured infant formula purchased with taxpayer dollars in an environment that put the products at unacceptable risk of microorganism contamination and significantly impacted the products’ reliability, quality and safety.
“Today’s settlement is a victory for American families and makes clear the safety of our children is not negotiable,” said Acting Deputy Attorney General Trent McCotter. “Abbott will pay a substantial sum to resolve serious allegations it violated federal health and safety requirements designed to protect babies. The Justice Department will act decisively against anyone who puts...
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