Abbott agrees to roughly US$385 million civil settlement over infant formula

Abbott Laboratories has agreed to pay US$384,999,040 to resolve allegations concerning powdered infant formula and nutritional products. The U.S. Justice Department says the civil settlement contains no determination of liability. The claims remain allegations, not a criminal conviction. [1]

The settlement’s scope

The case concerns claims submitted to federal and state programs between 2018 and 2022. It covers facilities in Sturgis, Michigan, and Casa Grande, Arizona. The department alleged manufacturing failures affecting products purchased with public funds. [3]

Associated Press recalls that the Sturgis closure and product recall in 2022 worsened an infant-formula shortage. The September 14, 2026 announcement concerns litigation linked to that period; it does not itself announce a new recall. [2]

According to AP, Abbott says tests of unopened products collected from the affected families were negative for Cronobacter sakazakii. That company position requires attribution. It does not turn the settlement into a judgment establishing every cause of the illnesses investigated. [2]

Compensation and prevention

Food Safety News separates family lawsuits from the federal settlement. It reports food-safety lawyer Bill Marler’s call for congressional action to strengthen prevention. That appeal concerns future rules, not new requirements established by the settlement amount. [3]