Abbott under DOJ criminal probe over behavior at Michigan baby formula plant - WSJ
Jan. 20, 2023 8:06 PM ETAbbott Laboratories (ABT)By: Jonathan Block, SA News Editor27 Comments
- The Department of Justice has begun a criminal investigation of conduct at an Abbott Laboratories (NYSE:ABT) baby formula production facility that was temporarily shut down in 2022, The Wall Street Journal reported.
- Abbott was heavily scrutinized after it voluntarily recalled baby formula, including its best-selling product Similac, produced at its Sturgis, Mich., plant after several children became sickened from Cronobacter infection after consuming the formula.
- The plant shutdown led to a severe baby formula shortage requiring the importation of product.
- The company told the newspaper it is cooperating with the investigation.
- The Federal Food, Drug and Cosmetic Act allows the federal government to charge companies or individuals for introducing adulterated products into the marketplace.
- In May, the US FDA entered a consent decree with Abbott (ABT) allowing the Sturgis plant to reopen.