Colorado Gets $2 Million in Nationwide Infant Formula Settlement
The settlement is one of the largest tied to the 2022 infant formula crisis, and no consumer claims process was created for families.
- On Monday, Abbott Laboratories agreed to pay nearly $385 million to resolve federal and state False Claims Act allegations concerning contaminated infant formula submitted between January 1, 2018, and December 31, 2022.
- The agreement follows a 2022 nationwide recall triggered by contaminated infant formula from Abbott's Sturgis, Michigan, plant, where investigators found recurring roof leaks and bacterial presence that disrupted production.
- Government prosecutors alleged Abbott knowingly manufactured formula in conditions risking microbial contamination while failing to disclose test results to regulators; taxpayers funded these products through WIC and Medicaid programs.
- Abbott settled without admitting liability, while former employees Scott Millard, Kristine Cooper, and Loren Cooper will receive approximately $69 million as their whistleblower share, the Justice Department announced.
- Individual consumers cannot file claims for compensation under this settlement, though officials stated the resolution warns manufacturers that the Justice Department will pursue companies supplying federally funded programs with unsafe products.
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Cryptocurrency News | Cryptocurrency Prices | Market CapIllinois Manufacturer Agrees to $384,999,040 Settlement Over Infant Formula False Claims
Federal prosecutors have secured a $384,999,040 civil settlement over allegations that powder infant formula and nutritional therapy products failed required manufacturing standards. Abbott Laboratories, an Illinois-based health care company, will pay that sum to resolve False Claims Act claims tied to its Sturgis, Michigan, and Casa Grande, Arizona, plants from January 1, 2018, through December […]
Colorado gets $2 million in nationwide infant formula settlement
(COLORADO) — Colorado Attorney General Phil Weiser announced on Wednesday, Sept. 16, that Colorado is expected to receive approximately $2 million from a nationwide settlement agreement with Abbott Laboratories to settle allegations of putting infant formula at increased risk of contamination, impacting the products' reliability, quality, and safety. The Colorado Attorney General said Abbott Laboratories, [...]
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