Abbott Laboratories Under DOJ Investigation Into 2022 Baby Formula Plant Shutdown: Report

The Justice Department's consumer-protection branch is conducting an investigation into infant formula maker Abbott Laboratories (NYSE: ABT).

The Wall Street Journal has reported that the Justice Department is investigating conduct at Abbott's plant in Sturgis, Michigan, citing people familiar with the matter.

"The DOJ has informed us of its investigation, and we're cooperating fully," The WSJ quoted an Abbott spokesman saying.

Abbott recalled formula and shut down production at its Sturgis manufacturing plant in February 2022 after infants who consumed formula made at the facility became sick.

Last year, in January, FDA inspectors found bacteria at the plant after receiving complaints. The FDA also found damage to drying equipment and defects in the seams of formula cans. 

Also Read: Abbott Spent $5B On Stock Buybacks Instead Of Fixing Its Baby Formula Factory

The plant shutdown led to a nationwide infant formula shortage. Abbott makes Similac, the country's top-seller baby formula. 

In May, Abbott signed a consent decree with the FDA detailing the steps the company would need to take to reopen the Sturgis plant. 

Abbott, Reckitt Benckiser Group (OTC: RBGLY) and Nestlé SA's (OTC: NSRGF) Gerber Products Company hold approximately 95% of the domestic infant formula market, with each company's pre-recall share estimated at 42%, 38%, and 15%, respectively.

Photo: courtesy of Shutterstock.