Mississippi Attorney General Lynn Fitch announced a $384 million settlement with Abbott Laboratories over allegations the company defrauded government health programs by selling infant formula and nutritional therapy products made in plants that failed to meet state and federal safety standards.
Fitch announced the agreement alongside 39 other states and the federal government. Under the settlement, 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 tied to Medicaid programs. 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,” Fitch said.
The federal and state governments alleged that Abbott knowingly manufactured infant formula purchased with taxpayer dollars in an environment that put the products at unacceptable risk of microorganism contamination, significantly impacting the products’ reliability, quality, and safety.
Investigators also alleged that in certain instances, Abbott failed to disclose test results...
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