Abbott to pay $385 million over contaminated baby formula that sparked 2022 shortage

Abbott Laboratories will pay $385 million to settle claims related to contamination concerns at a baby formula factory in Sturgis, Michigan, a facility described as the largest in the U.S. The investigation and subsequent recall of powdered infant formula contributed to the 2022 shortage, prompting a lawsuit by the Justice Department and the recall of multiple brands including Similac. The company says the settlement does not imply fault or liability. Abbott said regulator tests found no Cronobacter sakazakii in unopened product from the infants’ homes under investigation, and that no distributed Abbott formulas have ever tested positive for the bacterium. The Justice Department closed its criminal investigation.