From Dallas Express · Dallas Express · · 1m 30s
Abbott pays $385M over formula plant claims
Four years after a recall emptied shelves, Abbott settles federal claims over how it made infant formula.
In brief
Four years after a recall emptied shelves, Abbott settles federal claims over how it made infant formula. Abbott is paying $384,999,040 to close False Claims Act allegations about its formula plants, while still denying any wrongdoing. Originally reported by Dallas Express.
A $385 million settlement
The Justice Department announced on September 14 that Abbott Laboratories will pay $384,999,040 to settle civil allegations tied to infant formula and government-funded purchases.
What the claims covered
The government alleged Abbott caused false claims to be submitted to federal and state programs, including USDA and Medicaid money, between January 1, 2018 and December 31, 2022.
Leaky roofs over equipment
Prosecutors pointed to two plants, Sturgis, Michigan and Casa Grande, Arizona. The complaint described recurring roof leaks at Sturgis, patched with temporary fixes, dripping water near production equipment.
Three employees blew the whistle
The case came from whistleblower claims filed by three Abbott employees under the False Claims Act. They will split $69 million from the federal portion of the deal.
Abbott denies wrongdoing
The settlement includes no finding of liability. Abbott says a related criminal investigation has closed and that no unopened, distributed formula tested positive for the bacteria at issue.
“Nothing matters more than the safety and quality of Abbott's products”
The shortage it triggered
Abbott shut Sturgis in February 2022 and recalled Similac products, deepening pandemic-era shortages. Washington eased import rules and flew formula in from Europe before the plant reopened that June.
The key point
Abbott is paying $384,999,040 to close False Claims Act allegations about its formula plants, while still denying any wrongdoing.
