Abbott under DOJ criminal probe over behavior at Michigan baby formula plant - WSJ

Nathan Howard

• 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.