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Abbott Agrees to Pay $385M Formula Contamination Settlement

By Drooid · Sep 14, 2026, 11:38 PM UTC · How we work

Summary

Story summary

Abbott Laboratories agreed to pay $385 million to settle federal and state claims over infant-formula contamination.
The Justice Department alleged Abbott knowingly produced formula in conditions that increased microbial contamination risk.
Abbott recalled powdered formula in 2022 after reports of Cronobacter sakazakii and Salmonella Newport infections, closing its Sturgis, Michigan plant.
The recall and plant shutdown deepened the baby-formula shortage, prompting the Biden administration to ease import rules and airlift supplies.

History

Historical Context

On September 29 1982, seven Chicago residents died after cyanide-tainted Extra-Strength Tylenol, prompting Johnson & Johnson to recall 31 million bottles and spurring the FDA’s tamper-evident packaging rules and a federal anti-tampering law. The 2022 Abbott Laboratories infant-formula recall, which led to a $385 million Justice Department settlement, echoes that crisis, showing how the 1982 scandal still drives modern product-safety enforcement.

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Story summary

Abbott Laboratories agreed to pay $385 million to settle federal and state claims over infant-formula contamination.
The Justice Department alleged Abbott knowingly produced formula in conditions that increased microbial contamination risk.
Abbott recalled powdered formula in 2022 after reports of Cronobacter sakazakii and Salmonella Newport infections, closing its Sturgis, Michigan plant.
The recall and plant shutdown deepened the baby-formula shortage, prompting the Biden administration to ease import rules and airlift supplies.

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