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Abbott to pay $385M to settle baby formula recall and shortage claims

Published September 14, 2026 3:05 PM MST

Abbott Laboratories will pay $385 million to resolve claims tied to an investigation of contamination at a baby formula factory which led to a supply shortage in 2022. 

Abbott settlement

FILE - A sign in front of the Abbott Laboratories headquarters in Abbott Park, Illinois, US, on Thursday, Jan. 18, 2024. ( Jamie Kelter Davis/Bloomberg via Getty Images)

Dig deeper:

The settlement, which Abbott says does not represent any finding of fault or liability, also pertains to lawsuits filed by certain relators and the Attorneys General of several states.

Abbott said on Monday that tests by government regulators of unopened products from the homes of the infants under investigation at the time of the 2022 recall were negative for Cronobacter sakazakii, a bacterium that can cause illness in infants. 

The company also said that no unopened, distributed Abbott infant formulas have ever tested positive for Cronobacter sakazakii.

2022 baby formula recall

The backstory:

The recall in 2022 covered several infant formula brands, including Similac, and squeezed inventory that was already strained due to supply chain disruptions and stockpiling during the COVID-19 pandemic. 

The recall was initially issued after federal officials found four babies suffered from bacterial infections after consuming formula from the Sturgis, Michigan, factory. 

The Source: Information for this article was taken from The Associated Press and previous reporting by FOX Local. 

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