Penalty Amount
$384,192,156
Connecticut joined 39 other states and the federal government in a $384 million False Claims Act settlement with Abbott Laboratories over allegations that the company failed to manufacture powder infant formula and nutritional therapy products in compliance with federal and state requirements at its Sturgis, Michigan, and Casa Grande, Arizona facilities. Abbott allegedly manufactured formula in conditions that risked microorganism contamination and failed to disclose contamination test results to the FDA during 2019 and 2022 inspections. The settlement resolves claims that Abbott caused false claims to be submitted to the WIC program and state Medicaid programs between January 1, 2018, and December 31, 2022.
Abbott will pay $348,700,868 to the United States to resolve federal False Claims Act allegations and $35,491,288 to participating states for claims related to their state Medicaid programs, for a total of $384,192,156. Connecticut's share attributable to its Medicaid program is $936,629.70.
This enforcement action centered on Abbott's failure to meet 'statutory, regulatory, and contractual requirements' in manufacturing products sold to government programs, so in-house teams (particularly in healthcare, food, and manufacturing) should review government contracts and vendor agreements for compliance-with-law representations, quality control and manufacturing standards clauses, and warranties of regulatory conformity. Contracts should include explicit obligations to disclose adverse test results, inspection findings, or contamination events to customers and regulators promptly, along with audit rights allowing counterparties to verify manufacturing facility compliance. Vendor agreements with suppliers to regulated facilities should flow down FDA (and analogous) manufacturing requirements, and customer contracts for government-funded programs (WIC, Medicaid) should contain certifications, indemnification for false claims liability, and cooperation obligations during regulatory inspections.
Entity
Abbott Laboratories
Industry
Healthcare"an agreement with Abbott Laboratories (Abbott) to settle allegations that the company caused false claims to be submitted to federal and state programs"
"will pay $348,700,868 to the United States to resolve the False Claims Act allegations and $35,491,288 to participating States for claims related to their state Medicaid programs"
"initially filed in 2022 in the United States District Court for the Western District of Michigan under the federal False Claims Act and various state false claims statutes"
"Abbott allegedly failed to maintain its manufacturing equipment, failed to control the presence of water that put the products at increased risk of microorganism contamination, and, in certain instances, failed to disclose test results indicating the presence of microorganism contamination"
"Connecticut has joined 39 other states and the federal government to reach an agreement with Abbott Laboratories"
$384.2M
Abbott Laboratories agreed to pay more than $384 million — including $977,558 to Oregon — to resolve allegations that it sold powder infant formula and nutritional therapy products made in unsafe manufacturing conditions to Medicaid and food assistance programs such as WIC between January 2018 and December 2022. Investigators found Abbott failed to maintain manufacturing equipment and control water at its Sturgis, Michigan, and Casa Grande, Arizona, facilities, and withheld test results showing contamination during FDA inspections in 2019 and 2022. The settlement was negotiated by the National Association of Medicaid Fraud Control Units on behalf of the federal government and 39 states.
Connecticut Attorney General William Tong joined a coalition of states and local governments in filing suit against NHTSA over its rule weakening fuel economy standards for new passenger cars and light trucks. The lawsuit alleges the rule violates the agency’s statutory mandate and the Administrative Procedure Act; no penalty or final remedy is reported.
Connecticut Attorney General William Tong joined a multistate coalition suing the EPA over its repeal of greenhouse gas pollution limits for power plants and separately filed a notice of intent to sue over regulation of existing gas plants. The coalition asks the court to overturn the repeal and restore the protections; the release reports no monetary penalty or final order.
$400.0M
Connecticut Attorney General William Tong announced a $400 million settlement with Sandoz Inc. and Fougera Pharmaceuticals Inc. resolving allegations that the generic drug manufacturers conspired to inflate prices, limit competition, and restrain trade. The settlement includes consumer restitution and injunctive reforms; court approval was being sought.
Connecticut Attorney General William Tong joined a coalition of 21 attorneys general in submitting a comment letter opposing a DHS rule that allows certain affirmative asylum applications to be referred to removal proceedings without an asylum officer interview. The coalition argues the rule violates federal law and harms asylum seekers, including unaccompanied children; this was a policy opposition letter, not a privacy enforcement action.
Connecticut and Massachusetts co-led a coalition protest urging FERC to reject the proposed NextEra Energy-Dominion Energy merger. The coalition argued that the merger could increase market power and threaten energy affordability, reliability, and competition; the release does not report a final enforcement decision or penalty.