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Michigan to get share of $384M settlement tied to baby formula recall
Baby formula manufacturer Abbott Laboratories will pay $469,890 to the state of Michigan as part of a $384 million federal settlement deal tied to the 2022 recall of powered infant formula that may have been linked to the deaths of two children and drove a national infant formula shortage.
U.S. Food and Drug Administration inspectors reported unsanitary conditions at Abbott's manufacturing facility in Sturgis, Michigan, and a history of contamination with Cronobacter sakazakii bacteria, leading Abbott to issue a voluntary recall of its Similac, Alimentum and EleCare powdered formula.
Cronobacter bacteria can cause life-threatening blood stream and central nervous system infections, such as sepsis and meningitis, according to the FDA. In addition to the two deaths, other children also were hospitalized with Cronobacter infections after consuming Abbott's powdered formula, the agency reported.
Abbott to pay $385 million to settle allegations of contamination at a baby formula factory
Abbott Laboratories will pay $385 million to resolve claims tied to an investigation of contamination at a baby formula factory in Sturgis, Michigan, the largest in the country, which led to the supply shortages in 2022.
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 the attorneys general of several states.
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