Abbott Laboratories announced that it will pay $385 million to settle claims related to contamination at its infant formula plant in Sturgis, Michigan. This plant is the largest manufacturer of infant formula in the United States, and its issues led to a supply shortage in 2022.
Background and Complaints
The problems at this plant prompted the U.S. Department of Justice to file a complaint against the company and also issued a recall for infant formula from the market. This recall included several brands of infant formula, including Similac, and put additional pressure on inventories that were already strained due to supply chain disruptions and stockpiling during COVID-19-related shutdowns.
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Details of the Agreement and Consequences
The agreement reached by Abbott, according to the company, does not indicate any fault or liability and also includes complaints raised by some attorneys general from several states. Abbott announced on Monday that tests conducted by state inspectors on products collected from homes with infants during the 2022 recall were negative for the bacteria Cronobacter sakazakii. This bacterium can cause illness in infants. The company also stated that none of the infant formula distributed by it has ever tested positive for Cronobacter sakazakii.
Investigations and Government Response
The Department of Justice under Donald Trump halted its criminal investigations in this matter. The Biden administration also eased import regulations for foreign manufacturers, transported infant formulas from Europe by air, and enacted federal emergency regulations to prioritize production in the United States during the supply shortage.
Abbott shut down the plant in February 2022 after the U.S. Food and Drug Administration (FDA) began investigating it. The plant reopened in June of the same year.
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Source: abcnews.com
