Baby formula maker Abbott Labs to pay nearly $385 million to settle case over bacterial contamination at Michigan plant, tell me about this news in (https://www.cbsnews.com/news/baby-formula-abbott-labs-civil-case-michigan-plant/)

Abbott Laboratories has agreed to pay nearly $385 million to resolve a civil False Claims Act lawsuit with the U.S. Department of Justice (DOJ) and several states. The settlement stems from Cronobacter bacterial contamination and unsanitary conditions at its Sturgis, Michigan manufacturing facility, which led to a major nationwide infant formula recall in 2022.Key details from the reporting:

• Allegations: The DOJ alleged that Abbott caused federal programs to purchase powdered baby formula manufactured under conditions that posed an unacceptable risk of contamination. According to investigators, the company relied on temporary fixes rather than properly repairing roof leaks, intentionally avoided testing to prevent positive contamination results, and failed to disclose evidence of bacterial contamination to the FDA during 2019 and 2022 inspections.
• Criminal Case Dismissal: Federal prosecutors had originally sought to bring felony criminal charges against the company, supported by the head of the DOJ’s Criminal Division. However, senior DOJ leadership halted the criminal prosecution, opting instead to resolve the matter exclusively through the civil False Claims Act.
• Abbott’s Response: Abbott maintained that the settlement does not constitute any admission of fault or liability. The company noted that federal regulators’ tests of unopened formula containers retrieved from affected infants’ homes during the 2022 investigation tested negative for Cronobacter sakazakii, and emphasized that the government’s criminal probe is officially closed.
• Scrutiny: The decision to forego criminal prosecution prompted backlash and congressional scrutiny, including an inquiry launched by Senator Adam Schiff questioning the Justice Department’s enforcement priorities regarding corporate public health and safety violations.