Baby formula maker Abbott Labs agrees to settlement over closure of largest US plant

Por Michelle Chapman — – World RSS Feed

Abbott closed the Sturgis facility in February 2022 following the start of an investigation by the FDA

Michelle Chapman Monday 14 September 2026 20:43 BST

Bookmark

Bookmark popover

Removed from bookmarks

Close popover

Urgent warning as food giant recalls baby formula products over food poisoning toxin

Your support helps us to tell the story

Read more Support Now

From reproductive rights to climate change to Big Tech, The Independent is on the ground when the story is developing. Whether it’s investigating the financials of Elon Musk’s pro-Trump PAC or producing our latest documentary, ‘The A Word’, which shines a light on the American women fighting for reproductive rights, we know how important it is to parse out the facts from the messaging.

At such a critical moment in US history, we need reporters on the ground. Your donation allows us to keep sending journalists to speak to both sides of the story.

The Independent is trusted by Americans across the entire political spectrum. And unlike many other quality news outlets, we choose not to lock Americans out of our reporting and analysis with paywalls. We believe quality journalism should be available to everyone, paid for by those who can afford it.

Your support makes all the difference. Read more

Abbott Laboratories will pay $385 million to resolve legal claims arising from a contamination inquiry at its baby formula manufacturing plant in Sturgis, Michigan, the nation’s largest, which triggered severe supply shortages in 2022.

Concerns regarding the facility resulted in a lawsuit by the Justice Department alongside a sweeping recall of powdered formula products.

Affecting multiple major lines such as Similac, the recall further strained inventory already burdened by supply chain bottlenecks and stockpiling during COVID-19 shutdowns.

The settlement covers litigation initiated by specific relators as well as the Attorneys General of multiple states, though Abbott stated the resolution contains no finding of fault or liability.

Nestle is reportedly running some factories around the clock to step up production of its baby formula (Andrew Matthews/PA) ( PA Wire )

Abbott stated on Monday that regulatory tests on unopened formula retrieved from homes of infants investigated during the 2022 recall were negative for Cronobacter sakazakii, a bacterium that can cause illness in infants. Furthermore, the company emphasized that no unopened, distributed Abbott formula products have ever tested positive for the bacteria.

A criminal investigation into the matter conducted by the Justice Department under President Donald Trump has since been closed.

To address the shortage, the Biden administration relaxed import rules for foreign manufacturers, airlifted formula from Europe, and invoked federal emergency regulations to prioritize U.S. production.

Abbott closed the Sturgis facility in February 2022 following the start of an investigation by the Food and Drug Administration, before reopening it in June of that year.