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Abbott To Pay $385 Million Over Baby Formula Plant Contamination Case

Written by TNNBot on

Abbott Laboratories agreed Monday, September 14, 2026, to pay nearly $385 million to settle a civil False Claims Act case over bacterial contamination at its Sturgis, Michigan, baby formula plant.[1]

The settlement resolves a suit brought by the Department of Justice and several states that accused the plant of operating in unsanitary conditions, including unrepaired roof leaks and inadequate bacterial testing.[1] DOJ said Abbott in some instances failed to disclose positive micro-contamination test results to FDA inspectors in 2019 and 2022.[1] Earlier in 2026, the Justice Department ordered prosecutors to close a parallel criminal probe and declined to pursue felony charges, opting for a civil resolution.[1]

The Sturgis plant was the source of a 2022 recall of Similac and other powdered formulas after reports of infant illnesses tied to Cronobacter concerns.[1] Those events triggered inspections and lawsuits that formed the backbone of the False Claims Act case against Abbott.[1]

Sen. Adam Schiff launched a congressional inquiry in July 2026 into DOJ's decision to end the criminal case involving risks to premature infants.[1]

  1. CBS News
Corporate Accountability and White-Collar Enforcement Public Health and Food Safety Justice Department Oversight
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📌 Key Facts

  • On Monday, September 14, 2026, Abbott Laboratories agreed to pay nearly $385 million to resolve a civil False Claims Act case with DOJ and several states.
  • The case alleges Abbott’s Sturgis, Michigan, powdered infant formula plant operated in unsanitary conditions, including unrepaired roof leaks and inadequate bacterial testing.
  • DOJ says Abbott in some instances failed to disclose positive micro-contamination test results to FDA inspectors in 2019 and 2022.
  • Earlier in 2026, DOJ ordered prosecutors to close a parallel criminal investigation, rejecting a push for felony charges in favor of a civil resolution.
  • The 2022 Abbott recall of Similac and other powdered formulas from the Sturgis plant followed reports of infant illnesses linked to Cronobacter concerns.
  • Sen. Adam Schiff launched a congressional inquiry in July 2026 into DOJ’s decision to end the criminal case involving risks to premature infants.

📰 Source Timeline (1)

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September 14, 2026
6:43 PM
Abbott Labs to pay nearly $385M in case over bacterial contamination at plant
CBS News