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Abbott Agrees to $385 Million Settlement Over Sturgis Formula Contamination

Justice Department allegations describe roof leaks, cracked spray dryers, avoided microbiological testing tied to false claims on federal reimbursements.

Overview

  • The settlement, announced Monday, Sept. 14, 2026, requires Abbott to pay $384,999,040 to resolve a civil DOJ probe and related state claims stemming from its Sturgis, Michigan, plant.
  • The Justice Department complaint alleges chronic roof leaks that dripped over equipment, temporary fixes called “roof leak umbrellas,” and damaged spray dryers run between extended cleaning cycles.
  • Federal prosecutors say Abbott avoided or failed to disclose microbiological testing that could have shown contamination during FDA inspections in 2019 and 2022.
  • The payment breaks down to about $348.7 million to the federal government, $36.3 million to states for Medicaid and WIC-related claims, and a roughly $69 million share for whistleblowers.
  • Abbott says unopened, distributed product tested negative for Cronobacter and that the settlement is not an admission of criminal liability; the episode triggered a 2022 national formula shortage and federal actions such as eased imports and airlifts to protect infant nutrition access.