The story

Abbott Laboratories, maker of Similac, will pay nearly $385 million to settle claims it sold infant formula manufactured in facilities that did not meet safety requirements, the Justice Department announced Monday. The settlement involves a plant in Sturgis, Michigan, which produced a sizable share of the nation's formula supply. Abbott did not admit liability or fault.

In 2022, Abbott recalled powdered formulas from the plant after federal officials linked products to four infants hospitalized with rare bacterial infections, two of whom died. The Justice Department's complaint detailed unsanitary conditions including roof leaks, deteriorating equipment, and inadequate cleaning. Abbott installed umbrellas to divert water from production areas, creating a wet environment ripe for bacterial growth, the department said. Production was halted, contributing to a nationwide formula shortage that lasted months.

Federal prosecutors originally tried to pursue felony charges and had support from the assistant attorney general of the Justice Department's Criminal Division, but senior DOJ leadership would not allow the case to proceed, CBS News reported. The Justice Department ordered prosecutors to close the parallel criminal investigation earlier this year. Abbott said no unopened, distributed Abbott infant formulas have ever tested positive for the bacteria and that tests of unopened products from the homes of the infants under investigation were negative for Cronobacter sakazakii.