Abbott agrees to $385M infant formula settlement

• Abbott (NYSE:ABT) agreed to pay $385 million to resolve government and civil claims related to its 2022 powdered infant formula recall.
• The settlement resolves a Department of Justice investigation, civil claims, and actions involving certain states, without any admission of fault or liability.
• Abbott said no unopened distributed Abbott infant formula has tested positive for Cronobacter sakazakii and cited government findings that found no definitive link between its Michigan facility and reported cases.

Abbott (NYSE:ABT) agreed to pay $385 million on September 14, 2026, to resolve government and civil claims connected to its 2022 powdered infant formula recall.

The settlement resolves a Department of Justice investigation and lawsuit, along with claims brought by certain relators and several state Attorneys General.

Abbott said the agreement does not include any finding of fault or liability, and the U.S. government has closed its criminal investigation related to the matter.

The company stated that no unopened Abbott infant formula products distributed to consumers have ever tested positive for Cronobacter sakazakii.

Abbott also noted that FDA testing in early March 2022 of unopened product collected from the homes of affected infants returned negative results.

The company cited CDC conclusions that there was “no definitive link” between the Sturgis, Michigan manufacturing facility and the clinical cases under investigation.

The settlement concludes a major legal matter stemming from the 2022 recall while allowing Abbott to continue focusing on its nutrition, medical devices, and pharmaceutical businesses.