Oregon will get less than $1 million of a $384 million settlement with baby formula giant Abbott Laboratories over allegations that it sold taxpayer-funded formula and nutritional products made under unsafe conditions.
The state’s $977,558 share amounts to about a quarter of 1% of the overall settlement. It’s not yet clear where the money will go or whether any will return to Oregon’s Medicaid program, which paid for some of the products.
The settlement covers products Abbott made at plants in Michigan and Arizona from 2018 through 2022. Federal and state officials allege the company failed to properly maintain equipment and control water at the plants, increasing the risk of microbial contamination.
Officials also allege Abbott withheld test results showing contamination at its Sturgis, Michigan, plant during federal inspections in 2019 and 2022.
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