Abbott Laboratories has entered into a settlement agreement concerning the closure of its Sturgis, Michigan, plant, which was the largest baby formula production facility in the United States. The facility ceased operations in February 2022 after the Food and Drug Administration (FDA) launched an investigation into the plant's safety protocols and potential contamination issues.

The shutdown triggered a severe, months-long national shortage of infant formula, forcing many parents to scramble for supplies and prompting federal intervention to import formula from overseas. While the specific terms of the settlement have not been fully detailed in initial reports, the agreement marks a significant development in the legal fallout stemming from the crisis. The FDA investigation originally centered on reports of bacterial contamination that were linked to illnesses in infants who had consumed products manufactured at the site. Abbott has consistently maintained that there was no conclusive evidence linking their products to the reported illnesses, though the company did acknowledge the operational failures that led to the prolonged closure. The settlement represents a resolution to the various legal challenges the company faced following the supply chain collapse that left store shelves empty across the country for much of 2022.