NORTH CAROLINA — North Carolina will receive more than $216,000 as part of a $384 million settlement with Abbott Laboratories over allegations involving contaminated infant formula that contributed to the nationwide baby formula shortage in 2022.
Attorney General Jeff Jackson announced the settlement Monday with Abbott and 39 other states, along with the federal government.
North Carolina will receive $216,593.82 in restitution and recoveries, according to reports from WRAL.
The settlement resolves allegations that Abbott manufactured and sold powdered infant formula under conditions that created an unacceptable risk of microorganism contamination.
The Justice Department also alleged that Abbott failed to disclose certain positive contamination test results to the FDA, according to reports from WRAL.
Abbott makes more than 40% of the infant formula sold in the United States, including Similac.
In 2022, the company recalled several formula products made at its Sturgis, Michigan, facility.
The recall worsened an existing nationwide shortage, leading some stores and pharmacies to ration formula, according to reports from WRAL.
The North Carolina Department of Justice said the state’s settlement money will go toward Medicaid and food assistance programs that support families.
The allegations resolved by the settlement have not been adjudicated, and the settlement does not constitute an admission of liability by Abbott.