WS Investor
14 Sep 2026, 17:13
Abbott Reaches $385 Million Settlement With DOJ Over 2022 Infant Formula Recall
Abbott said it reached an agreement to resolve U.S. Department of Justice and related state claims stemming from the company’s manufacturing operations and 2022 recall of powdered infant formula from its Sturgis, Michigan facility.
Under the agreement, Abbott will pay a total of $385 million to resolve the claims. The company emphasized that the settlement does not constitute a finding of fault or liability and said the government had previously closed its criminal investigation into the matter.
Abbott also said no unopened, distributed infant formula involved in the matter ever tested positive for Cronobacter sakazakii. According to the company, FDA testing of unopened products from the homes of infants investigated during the recall was negative, while the CDC later concluded there was no definitive link between the Sturgis facility and the clinical cases under investigation.
The settlement provides greater legal clarity around a major issue that has followed Abbott since the 2022 recall, which disrupted U.S. infant-formula supplies and drew significant regulatory scrutiny. The $385 million payment represents a financial cost for Abbott, but resolving the litigation removes an important source of uncertainty surrounding its nutrition business.
Abbott said it reached an agreement to resolve U.S. Department of Justice and related state claims stemming from the company’s manufacturing operations and 2022 recall of powdered infant formula from its Sturgis, Michigan facility.
Under the agreement, Abbott will pay a total of $385 million to resolve the claims. The company emphasized that the settlement does not constitute a finding of fault or liability and said the government had previously closed its criminal investigation into the matter.
Abbott also said no unopened, distributed infant formula involved in the matter ever tested positive for Cronobacter sakazakii. According to the company, FDA testing of unopened products from the homes of infants investigated during the recall was negative, while the CDC later concluded there was no definitive link between the Sturgis facility and the clinical cases under investigation.
The settlement provides greater legal clarity around a major issue that has followed Abbott since the 2022 recall, which disrupted U.S. infant-formula supplies and drew significant regulatory scrutiny. The $385 million payment represents a financial cost for Abbott, but resolving the litigation removes an important source of uncertainty surrounding its nutrition business.
