Abbott agrees to $385 million settlement over infant-formula recall claims

Abbott ($ABT) said it will pay $385 million to resolve a previously disclosed Justice Department investigation and lawsuit, together with claims brought by certain whistleblowers and state attorneys general. The matters concern manufacturing and the 2022 powdered infant-formula recall at its Sturgis, Michigan facility. The company said the settlement does not constitute a finding of fault or liability.

Abbott also noted that the related criminal investigation had already been closed, making that point background rather than a newly announced decision. The agreement establishes a payment to resolve the specified claims; it is not an announcement that every formula-related dispute has ended. Abbott said it remains focused on product quality and supplying families that depend on its formula.

Sources:

• Abbott — settlement announcement