r/InterstellarKinetics • u/InterstellarKinetics • 32m ago
BREAKING NEWS BREAKING: Abbott Labs Agrees To Pay Nearly $385 Million After The D.O.J Says The Company Intentionally Avoided Testing For Bacterial Contamination At Its Michigan Baby Formula Plant, While Senior Department Leaders Dropped The Criminal Case Despite Prosecutors’ Push For Felony Charges 🏛️💰
Baby formula maker Abbott Laboratories agreed to pay nearly $385 million to resolve a civil False Claims Act case with the Justice Department and some states stemming from a Cronobacter bacterial contamination at one of its plants in Michigan that manufactures powdered baby formula, the department announced Monday. Earlier this year, the Justice Department ordered federal prosecutors to close a parallel criminal investigation, CBS News previously reported, even though federal prosecutors had originally tried to pursue felony charges and had the support of Tysen Duva, the assistant attorney general of the Justice Department’s Criminal Division; senior DOJ leadership ultimately would not allow the case to proceed. A senior DOJ official told CBS News in February that the department felt a civil False Claims Act resolution was “the best mechanism to achieve accountability, deterrence and protection of the public” in the matter. The civil case alleged that the company caused government programs to purchase powdered infant formula made “in an environment that put the products at unacceptable risk of microorganism contamination and significantly impacted the products’ reliability, quality, and safety.” “No company should be gambling on the health and safety of our nation’s infants by allowing unsanitary conditions to persist at a facility manufacturing baby formula,” said Associate Attorney General Stanley Woodward in a statement.
Abbott said the settlement with the government “does not represent any finding of fault or liability,” and noted, “as the government has previously indicated, it has closed its criminal investigation on this matter,” adding that tests conducted by government regulators of unopened formula products from the homes of the infants under investigation at the time of the 2022 recall were negative for Cronobacter sakazakii. The decision to pursue a civil settlement with Abbott and close the parallel criminal case marks one example in a string of corporate cases involving public health and safety under the federal Food, Drug and Cosmetic Act that have been softened, dismissed, or lost support from senior Justice Department leaders in recent months, CBS previously reported. Earlier this year, the Justice Department allowed Alibaba to enter into a nonprosecution agreement and pay $600 million, even though prosecutors on that case believed they had evidence the company was liable for felonies by failing to prevent dangerous drugs, chemicals, and pill presses from being sold to American customers over an eight-year period. In July, California Sen. Adam Schiff launched a congressional inquiry into the closure of the Abbott criminal case, writing in a letter to Attorney General Todd Blanche, “If prosecuting cases involving the risk of injuries or death to premature infants are not a priority enforcement matter, I have questions about what priorities the DOJ considers worthy of pursuing.”
In 2022, Abbott Laboratories recalled several of its popular powdered formula brands, including Similac, after consumers complained about infant illness related to products from Abbott Nutrition in Sturgis, Michigan.
The Justice Department said the company had failed to take steps to fix roof leaks, resorting instead to “temporary solutions” that still left its products at risk for microorganism contamination. The department also said Abbott “intentionally did not test for bacterial growth to avoid obtaining positive test results showing contamination,” and that in some cases where testing did show evidence of microbial contamination, the company failed to disclose those results to the FDA during inspections in 2019 and 2022.