Tennessee AG Secures $2.35 Million in Abbott Baby Formula Settlement

Attorney General Jonathan Skrmetti announced that Tennessee will recover $2,349,346.04 as part of a $384.9 million multistate and federal settlement with Abbott Laboratories over allegations involving failed safety standards for powder infant formula and nutritional therapy products. Tennessee joined 39 other states and the federal government in reaching the settlement, which resolves allegations that Abbott caused false claims to be submitted to federal and state programs after failing to manufacture certain products in compliance with applicable safety requirements. “Parents across Tennessee have to know with absolute certainty that the food they buy for their babies is safe,” said Attorney General Jonathan Skrmetti. “When manufacturers fail to meet the standards parents and the law require, we need to hold them accountable. This settlement holds Abbott accountable. If you sell baby food in Tennessee, you’d better follow the rules.” The recovery. Abbott will pay $348,700,868 to the United States and $36,298,172 to participating states for claims involving their Medicaid and WIC programs, which provide nutritional support to eligible families. Tennessee will receive $2,349,346.04 from the settlement. The allegations. The settlement resolves claims that, between January 1, 2018, and December 31, 2022, at its facilities in Sturgis, Michigan, and Casa Grande, Arizona, Abbott failed to maintain manufacturing equipment, control conditions that increased the risk of microorganism contamination, and, in certain instances, disclose test results indicating contamination during FDA inspections. Background . The settlement follows a qui tam lawsuit filed in 2022 in the U.S. District Court for the Western District of Michigan. The United States and several states, including Tennessee, subsequently filed complaints alleging violations of the federal and state False Claims Acts. A National Association of Medicaid Fraud Control Units (NAMFCU) Team participated in the investigation and settlement negotiations on behalf of the states. The Team included representatives from the Offices of the Attorneys General for California, Connecticut, Colorado, Florida, Maryland, Massachusetts, Michigan, New York, Ohio, Oregon, and Tennessee.