Three former Abbott employees' case marks groundbreaking use of False Claims Act in infant formula manufacturing
WASHINGTON, Sept. 14, 2026 /PRNewswire/ -- Following a 2022 Complaint filed by Stein Mitchell Beato & Missner LLP on behalf of three whistleblowers, Abbott Laboratories ("Abbott") has agreed to pay the United States and participating Medicaid States nearly $385,000,000 to settle allegations about the quality and safety of powdered infant formula and other nutritional products made at Abbott's plants in Sturgis, Michigan and Casa Grande, Arizona. The Sturgis plant's temporary closure in 2022 due to concerns with microorganism contamination triggered a nationwide shortage of infant formula and a federal investigation into Abbott's manufacturing practices.
The settlement announced today resolves federal and state False Claims Act ("FCA") allegations that Abbott failed to manufacture certain powdered infant formula and nutritional therapy products that complied with federal and state statutory and regulatory requirements. The products were purchased with government funds under the Special Supplemental Nutrition Program for Women, Infants, and Children ("WIC") program administered by the U.S. Department of Agriculture ("USDA"), which pays for more than fifty percent of all infant formula sold in the United States. The FCA Complaint was filed by Stein Mitchell Beato & Missner LLP on behalf of former Abbott employees Scott Millard, Kristine Cooper, and Loren...
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