FTC, SEC & DOJ All Investigating Abbott Laboratories For Their Infant Formula Shortage Role

After the Justice Department began investigating Abbott Laboratories in January, the Federal Trade Commission and Securities and Exchange Commission have launched their own probes.

The latest development finds the baby formula manufacturer in even more hot water for their role in the national formula shortage. Abbott was placed in the spotlight last February when the Food and Drug Administration went to inspect their Sturgis, Michigan plant. They were following up on a tip that alleged the plant was not practicing proper cleaning techniques, resulting in the contaminated baby formula being shipped to grocery stores nationwide.

Investigators found cronobacter sakazakii bacteria, a germ that thrives in dry places, with powdered infant formula being a perfect breeding ground for the pathogen. Abbott was forced to recall Similac, EleCare, and Alimentum, along with any other infant formula made at the Sturgis plant. In total, two infants who drank the formula tainted with cronobacter sakazakii died, while hundreds of others were sickened. The FTC has requested information about Abbott’s bid for infant formula contracts with the WIC program. Adding insult to injury, the SEC sent a subpoena on Friday, demanding information about Abbott’s business dealings.

A class action lawsuit and multiple civil lawsuits have been filed against Abbott for its shortcomings. Many point out the timeframe it took for the company to shut down the Michigan factory, despite investigators finding standing water, cracks in the ceiling, and unsafe equipment.