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Attorney General Fitch announced, along with 39 other states and the federal government, that an agreement with Abbott Laboratories (Abbott) to settle allegations that the company defrauded government health programs by selling them infant formula and nutritional therapy products manufactured in plants that failed to meet state and federal safety standards for preventing contamination. Abbott will pay about $348.7 million to the United States to resolve False Claims Act allegations and another $35.5 million to the states for claims related to Medicaid programs. As part of the settlement, Mississippi will receive $771,432.52 in restitution and other recoveries.
“Parents should be able to trust that the infant formula they feed their babies is safe, but Abbott betrayed that trust. My office is dedicated to protecting the integrity of the Medicaid program and ensuring that Mississippians receive the necessities that their families rely on. This settlement holds Abbott accountable for knowingly manufacturing formula in substandard conditions and defrauding taxpayers,” said Attorney General Lynn Fitch.
The federal and state governments allege 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. They also alleged that, in certain...
Getting your Trinity Audio player ready... Attorney General Fitch announced, along with 39 other states and the federal government, that an agreement with Abbott Laboratories (Abbott) to ...