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 31, 2022, says the U.S. Attorney’s Office for the Western District of Michigan.
The company will send $348,700,868 to the federal government and $36,298,172 to certain states that operate Medicaid and WIC programs.
USDA money through WIC covers more than half of infant formula purchases nationwide.
Prosecutors alleged the firm made formula in conditions that created too great a risk of microbial contamination.
They also alleged that the company neglected machinery, left water unchecked so microbes could grow, and hid problems rather than stopping contamination.
United States Attorney Timothy VerHey says,
“When someone supplies the government with food that is meant to be given to our infant children, we demand that it meet or exceed every federal nutrition and safety requirement…
“This case demonstrates that anyone who fails this standard will pay a high price.”
Relators including Scott Millard brought the qui tam action in the Western District of Michigan.
The settlement resolves allegations only, and no court has determined liability.
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