Abbott Laboratories has agreed to pay $385 million to settle allegations brought by the Department of Justice regarding the company's operational practices at its Sturgis, Michigan, manufacturing plant. The investigation stemmed from reports of bacterial contamination at the facility, which was linked to illnesses and suspected infant deaths.

In 2022, the discovery of contamination led to the temporary closure of the plant, which was the largest producer of powdered baby formula in the United States at the time. This closure triggered a massive recall of major brands, including Similac, and exacerbated a severe nationwide supply chain crisis that left many parents struggling to find formula for their children.

The settlement addresses government concerns regarding the company's oversight and safety protocols during the period leading up to the contamination. While Abbott has agreed to the financial terms to resolve the DOJ's allegations, the company has faced ongoing scrutiny from regulators and the public regarding how quickly they responded to initial reports of safety issues. The agreement serves as a conclusion to the federal investigation into the facility's management, though it does not necessarily resolve all private civil litigation brought by families affected by the formula recall.