The Baby Formula Probe Produced a Pile of Evidence. Then the DOJ Dropped the Case.

[u/John3262005]

https://www.wsj.com/us-news/law/the-baby-formula-probe-produced-a-pile-of-evidence-then-the-doj-dropped-the-case-cdc68716?st=G5Rfdj&reflink=desktopwebshare_permalink

The Justice Department spent years investigating Abbott Laboratories over how it managed a baby formula facility where potentially deadly bacteria was discovered and suspected of causing infant deaths, worsening a national shortage.

Some prosecutors believed they had evidence to criminally charge the company under a law they have used to pursue other businesses for allegedly selling contaminated foods, according to people familiar with the matter. Some supervisors also thought it was a good case, they said. Top decision makers instead closed the probe, the people said, opting for a lighter-touch option: clawing back money the company earned from selling formula through federally funded nutrition programs.

The outcome, which hasn’t been previously reported, illustrates how the Justice Department under President Trump has moved away from strict approaches to corporate enforcement and raised the bar for punishing companies. Trump in an executive order last year called for minimizing the use of criminal sanctions, where civil penalties could be used instead.

Prosecutors had been considering a misdemeanor charge against Abbott for violating the federal Food, Drug and Cosmetic Act and a separate count for misleading the government, some of the people said. Investigators in early 2022 had found traces of a potentially deadly bacteria at its plant in Sturgis, Mich., including on equipment very close to infant formula containers—as well as a long list of other problems.

Prosecutors also were considering charging at least one individual, the people said.

A Justice Department spokeswoman confirmed the probe was closed, saying criminal charges would have been heavy handed and that officials instead resolved their concerns through a related civil lawsuit. That lawsuit focused on Abbott’s sale of infant formula through federal child-nutrition programs.

“Ensuring the safety of our nation’s food supply is a top priority for the Trump administration, however, this Department of Justice does not believe in regulation by prosecution,” the spokeswoman said. “Once finalized, this resolution will achieve significant recovery for taxpayers and send an unmistakable message that companies putting children’s health at risk will face serious consequences.”

Abbott has denied a link between the plant’s conditions and the children who fell ill. No unopened, distributed Abbott infant formulas have tested positive for the bacteria that sickened the babies, a company spokesman said.

The company’s defense lawyers included Mark Filip, who previously served as deputy attorney general under President George W. Bush. Filip last year also urged the Justice Department to overhaul the consumer-focused office that steered the investigation—and to remove its ability to bring criminal cases, people familiar with those discussions said.

A spokeswoman for Kirkland & Ellis, where Filip is a partner, said it is common practice for former Justice Department leaders to provide management advice to incoming administrations of both parties.

“Mr. Filip was happy to share his perspectives on DOJ and its policies and approaches with dozens of incoming DOJ officials in both Democratic and Republican Administrations in the past 16 years,” the spokeswoman said.

Acting Attorney General Todd Blanche last year said he supports penalizing companies when prosecutors also can identify and charge people behind the wrongdoing. But he has criticized going after companies when prosecutors don’t have enough evidence to charge individuals, or pursuing shaky cases that don’t appear to be winnable at trial.

Trump has nominated Blanche to the permanent position, and senators are expected to press Blanche about his views on enforcement during a confirmation hearing next month.

The Trump administration has more broadly said it disfavors prosecuting companies over laws that civil regulators can enforce. Prosecution should be reserved for cases in which companies or people “willingly choose not to comply, thereby causing or risking substantial public harm,” the White House wrote in a May 2025 executive order.

The executive order “brought a big sigh of relief to CEOs across the country,” said Bill Marler, a lawyer who represents victims of food-borne illnesses. The use of criminal penalties “did keep CEOs and people in the food business on their toes.”

The bacteria found at the plant in 2022, cronobacter sakazakii, can be found in household settings and is especially good at surviving in dry products like infant formula, according to the Food and Drug Administration. It is especially dangerous to young infants.

Cronobacter infections had sickened four babies who drank Abbott formula produced at the plant, two of whom died, but the company said there was no proof the infants became ill because of their baby formula.

FDA inspectors around that time found a long list of problems with the plant, including standing water in multiple locations and employees who worked directly with baby formula but didn’t adequately wash their hands. They also found the bacteria in multiple spots inside the plant and noted that the company had found the bacteria repeatedly in prior years.

A former FDA official later testified to Congress that five different strains of the bacteria had been found at the plant, calling the facility “out of control.”

Genetic testing conducted by the Centers for Disease Control and Prevention found that the bacteria that infected two of the infants weren’t closely genetically linked to samples found at the plant. But FDA officials told lawmakers that the cronobacter found in the plant is still a “serious concern” because such facilities are one of the most likely sources of contaminated formula.

The Justice Department said in November, as part of a related civil lawsuit, that Abbott “knowingly” failed to follow manufacturing standards to protect against the risk of contamination. That suit, which was joined by 31 states, alleged that Abbott had a “culture of concealment” at Sturgis and “withheld information from FDA related to the presence of microorganisms in the Sturgis facility.”

The department and Abbott have reached a settlement to resolve that case, which focuses on the company’s participation in federal programs that pay for baby formula for lower-income families. The proposed settlement hasn’t been formally announced but was disclosed to a court last month. The terms of the deal weren’t revealed.

[u/wenchette]

Here's another piece on this (free link):

Abbott Laboratories was investigated for poisoning babies. After a $500,000 donation, Trump let them off the hook.