Abbott to Pay $385 Million Over Formula Plant Closure

Abbott Laboratories will pay $385 million to settle a federal civil case over contamination risks at its Sturgis, Michigan baby formula plant. The Justice Department announced the deal Monday.

• $385 million resolves claims from DOJ, several state attorneys general, and private relators.
• DOJ alleged Abbott withheld contamination test results from FDA during 2019 and 2022 inspections.
• Abbott closed the Sturgis plant in February 2022; it reopened by June of that year.
• Government tests of unopened formula from affected infants' homes found no Cronobacter sakazakii.

Why it matters: The Sturgis plant is the largest infant formula facility in the United States. Its 2022 closure deepened a supply shortage already strained by COVID-era supply chain disruptions and stockpiling.

• The Biden administration airlifted formula from Europe and invoked emergency production rules to address the shortage.

How 14 sources split on this story

Where they split: The central dispute is whether closing the criminal case and settling civilly represents adequate accountability for risks to infant health.

What’s next: The Trump DOJ closed a parallel criminal investigation; senior leadership blocked felony charges prosecutors sought.

• Sen. Adam Schiff launched a congressional inquiry in July into the criminal case closure.
• Whether the civil settlement amount is sufficient to deter future safety violations at infant formula manufacturers.
• What, if any, findings will emerge from Sen. Schiff's congressional inquiry into the DOJ's decision to drop criminal charges.