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Problems at the facility prompted a lawsuit by the Justice
Department and recall of powdered infant formula at the
facility.
The recall covered several infant formula brands, including
Similac, and squeezed inventory that had already been strained
by supply chain disruptions and stockpiling during COVID-19
shutdowns.
The settlement, which Abbott says does not represent any finding
of fault or liability, also pertains to lawsuits filed by
certain relators and the Attorneys General of several states.
Abbott said on Monday that tests by government regulators of
unopened product from the homes of the infants under
investigation at the time of the 2022 recall were negative for
Cronobacter sakazakii, a bacterium that can cause illness in
infants. The company also said that no unopened, distributed
Abbott infant formulas have ever tested positive for Cronobacter
sakazakii.
The Justice Department under President Donald Trump closed its
criminal investigation into the matter.
The Biden administration eased import rules for foreign
manufacturers, airlifted formula from Europe and invoked federal
emergency rules to prioritize U.S. production during the supply
shortage.
Abbott closed the Sturgis facility in February 2022 after the
Food and Drug Administration began an investigation. The plant
was reopened by June of that year.
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