NC reaches settlement with Abbott over contaminated baby formula that led to 2022 shortage
By Ashley Foster
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North Carolina (WRAL) — North Carolina has reached a settlement over contaminated baby formula that sparked the 2022 nationwide shortage.
Abbott Laboratories will pay $384 million to resolve Medicaid fraud allegations from 39 sates and the federal government.
Regulators found Abbott knowingly sold formula with high contamination risks and failed to disclose positive bacterial test results to the FDA.
Abbott makes more than 40% of all formula sold in the United States, including Similac.
The recall forced pharmacies and grocery stores to ration baby formula sales, and scammers began selling fraudulent formula.
It led to parents struggling to find and buy formula to feed their infants.
“When parents bought baby formula, they were trusting that the manufacturer was taking every precaution to make sure that product was safe for their child. Abbott failed to meet that standard here, and parents and taxpayers suffered,” said Attorney General Jeff Jackson.
North Carolina will get over $216,000 from the settlement.
The money will directly support state Medicaid and nutritional programs for local families.
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