Abbott Laboratories Reaches $384 Million Settlement With Department of Justice Over Infant Formula Allegations
Abbott Laboratories agreed to pay $384,999,040 to resolve allegations involving powdered infant formula and nutritional therapy products manufactured at facilities in Sturgis, Michigan, and Casa Grande, Arizona, ad-hoc-news.de reported. The settlement, announced by the U.S. Department of Justice on September 14, 2026, covers products supplied to federal and state programs between January 1, 2018, and December 31, 2022.
Financial Terms and Program Payouts
Under the terms of the agreement, Abbott Laboratories will pay $348,700,868 directly to the United States and $36,298,172 to certain participating states. The U.S. Department of Justice stated that the financial agreement resolves claims tied to nutritional therapy products and powdered infant formula distributed across government-backed programs during the four-year span.
Company Response and Liability Stance
According to the U.S. Department of Justice, the issues addressed in the settlement were merely unproven accusations, and no formal fault had been established. Abbott Laboratories said the settlement did not represent a finding of fault or liability. The company also maintained that government investigations and testing found no evidence that Abbott formula caused the illnesses or deaths that prompted the 2022 recall.
After-Hours Stock Trading at Lang & Schwarz
Abbott Laboratories stock traded at EUR 86.25 after-hours at 6:49 p.m. CEST on October 2, 2026, according to Lang & Schwarz. The price rose 0.24 percent compared to the prior close of EUR 86.04 at Lang & Schwarz on October 1, 2026. Continuous real-time quotes tracked the stock’s performance through the evening session until 11:00 p.m. CEST.
Frequently Asked Questions
What products were covered by the Department of Justice settlement?
The settlement involved certain powdered infant formula and nutritional therapy products manufactured at facilities located in Sturgis, Michigan, and Casa Grande, Arizona.
Which government programs were involved in the distribution period?
The scrutiny involved items delivered to state and federal initiatives starting on January 1, 2018, and concluding on December 31, 2022.
What was the total financial amount agreed upon by Abbott Laboratories?
Abbott Laboratories agreed to pay a total of $384,999,040, which includes $348,700,868 paid to the United States and $36,298,172 paid to certain states.
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