Maryland to Recover over $3M as Abbott Laboratories to Pay $384M+ Nationwide in Infant Formula Fraud Settlement
The Office of the Attorney General of Maryland , joined by 39 other states and the federal government, has reached a nationwide civil settlement exceeding $384 million with Abbott Laboratories. The agreement resolves False Claims Act allegations that the healthcare company defrauded government health programs by manufacturing powder infant formula and nutritional therapy products in facilities that failed to comply with state and federal contamination safety standards. Settlement Terms & Financial Breakdown * National Recovery : Abbott will pay roughly $348.7 million to the federal government to resolve False Claims Act claims, alongside $35.5 million distributed to participating states for Medicaid-related claims. * Maryland's Direct Share : Maryland was one of five states that directly intervened to litigate the action (joining California, Connecticut, Massachusetts, and Tennessee) and will recover more than $3 million. * Covered Timeframe : Resolves false claims...