Press Release
Abbott Pays Over $384 Million to Settle False Claims Act Allegations Related to Powder Infant Formula and Nutritional Therapy Products
October 22, 2026
(Anchorage, AK) – The State of Alaska has joined 39 other states and the federal government in a settlement with Abbott Laboratories (Abbott) over allegations that the company sold powder infant formula and nutritional therapy products that did not meet safety and quality requirements.
Abbott will pay $348,700,868 to the United States and $35,491,288 to participating states. Alaska will receive $128,233.14 in restitution and other payments related to claims involving the state’s Medicaid program.
“The bottom line is that Abbott used our tax dollars to create sub-par and dangerous products for our children,” said Acting Alaska Attorney General Cori Mills. “This settlement is important, but more important is rebuilding trust in a company that we have to depend on for our children’s health. I’m thankful for this first step, and we will be working towards the next.”
Many families depend on infant formula and nutritional products to keep their children healthy. State Medicaid programs pay for some of these products. The federal government also helps families buy infant formula through the Special Supplemental Nutrition Program for Women, Infants, and Children, known as WIC.
The governments allege that Abbott caused false claims to be submitted to Medicaid, WIC, and other public programs from Jan. 1, 2018, through Dec. 31, 2022. The allegations involve products made at Abbott facilities in Sturgis, Michigan, and Casa Grande, Arizona.
According to the allegations, Abbott did not properly maintain some manufacturing equipment or control water in its facilities. These problems increased the risk that the products could become contaminated. The governments also allege that Abbott did not disclose certain test results showing possible contamination during inspections by the U.S. Food and Drug Administration in 2019 and 2022.
As a result, the governments allege that Medicaid and WIC paid for products that did not meet required safety, quality, and reliability standards. Families and children may have been put at risk, while taxpayers paid for products that should not have been sold through these programs.
The settlement resolves allegations brought under the federal False Claims Act and state false claims laws. It does not represent a finding of liability or wrongdoing by Abbott.
The case began with a lawsuit filed in 2022 in the U.S. District Court for the Western District of Michigan. On Nov. 13, 2025, the United States filed a complaint against Abbott. On Dec. 1, 2025, California, Connecticut, Maryland, Massachusetts, New York, and Tennessee filed a complaint on behalf of their Medicaid programs.
A National Association of Medicaid Fraud Control Units (NAMFCU) Team participated in the investigation and conducted settlement negotiations with Abbott on behalf of the states. The Team included representatives from the Offices of the Attorneys General for the states of California, Connecticut, Colorado, Florida, Maryland, Massachusetts, Michigan, New York, Ohio, Oregon, and Tennessee.
*The Alaska MFCU is part of the Alaska Department of Law and is located in Anchorage. It is responsible for investigating and prosecuting Medicaid fraud, abuse, neglect, and financial exploitation of patients in any facility that accepts Medicaid funds. The unit is 75% federally funded by the U.S. Department of Health and Human Services under a grant award totaling $1,979,808 for FY 2026. The remaining 25%, totaling $659,934, is funded by the State of Alaska. Citizens with information about suspected medical assistance fraud, patient abuse or neglect are encouraged to use the Alaska MFCU online complaint form or to contact the unit at (907) 269-6279.
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Department Media Contact: Information Officer Sam Curtis at sam.curtis@alaska.gov or (907) 269-6269.
Due to resource constraints, we no longer post links to referenced records. Records filed in a federal court are readily available at Docket Search or PACER, and records filed in a State of Alaska court are readily available from the Alaska Court System (Trial Courts - Alaska Court System and Search for an Appellate Case). Contact Sam Curtis to request a referenced record that is not readily available from a court or on the internet, or contact law.recordsrequest@alaska.gov to submit a formal Alaska Public Records Act request.