Abbott Pays $384M to Settle Medicaid Fraud Claims Over 2022 Formula Contamination

Abbott Laboratories agreed to pay $384 million to resolve federal and state allegations that it caused Medicaid to pay for contaminated infant formula prior to the 2022 recall and shortage. North Carolina will receive over $216,000 as part of the multistate settlement. The settlement addresses claims that Abbott violated the False Claims Act by distributing adulterated formula that was reimbursed by Medicaid. The case stems from the February 2022 recall of formula manufactured at Abbott's Sturgis, Michigan facility after bacterial contamination led to infant illnesses and deaths.

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