The Abbott infant formula settlement will require the company to pay $385 million to resolve claims related to manufacturing and its 2022 powdered-formula recall. Abbott Laboratories (NYSE: ABT) said the agreement covers a U.S. Department of Justice investigation and lawsuit, certain relator cases and actions filed by several state attorneys general.
Abbott said the settlement does not represent a finding or admission of fault or liability. The company also stated that the government had previously closed its criminal investigation into the matter.
Abbott Infant Formula Settlement Resolves Multiple Government Claims
The company said no unopened Abbott formula distributed to consumers tested positive for Cronobacter sakazakii. It also cited earlier FDA testing of unopened products from affected homes and a CDC conclusion that there was no definitive link between the Sturgis facility and the clinical cases then under investigation.
Abbott provides company statements through its official corporate newsroom. The complete legal agreements will determine the scope of released claims, payment timing and any continuing obligations.
The Abbott infant formula settlement removes a major piece of litigation uncertainty dating from the 2022 recall. Investors will still monitor legal expenses, manufacturing oversight, reputation and market-share trends across the company’s nutrition business.
