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DOJ Closes Abbott Baby Formula Investigation Without Criminal Charges

Wall Street Journal US Business •
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The Justice Department spent years investigating Abbott Laboratories over its baby formula facility where dangerous bacteria were found and linked to infant deaths. Prosecutors believed they had enough evidence to pursue criminal charges under federal food safety laws, but senior officials chose a different path. The investigation examined how the company managed the plant during a severe national shortage that left shelves empty.

Some career prosecutors argued the case was strong enough to charge the company for allegedly selling contaminated products. They had successfully used similar statutes against other food manufacturers. However, top DOJ leadership opted against criminal prosecution, instead pursuing a civil settlement that would recover funds the company earned through federal nutrition programs.

The decision represents a significant outcome for Abbott Laboratories, which faced potential criminal liability for its role in the formula crisis. The civil remedy allows the government to claw back money without the burden of proving criminal intent in court. This leaves the company to address regulatory and reputational consequences through less severe penalties.

The move signals how the Biden administration handled corporate accountability in a public health emergency that affected millions of families nationwide.