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 attorneys general from 17 states in an amicus brief urging the New York Court of Appeals to preserve state authority to pursue fraud cases. The underlying civil case alleges that Donald Trump and his co-defendants inflated asset values to obtain better loan and insurance terms; this press release announces advocacy, not a new enforcement order or penalty.
$220.0M
Connecticut and a coalition of 36 attorneys general reached a $220 million settlement with General Motors over the collection and sale of consumers’ driving behavior and location data to data brokers and insurers without adequate disclosure or consent. The settlement requires affirmative express consent before collecting or disclosing driving and location data, limits data collection, and imposes privacy program assessments and dealership oversight and training.
Connecticut Attorney General William Tong and 13 other attorneys general sent Meta a letter after the No Kings Coalition’s Instagram account was mistakenly suspended during a nationwide election-related day of action. The letter asks Meta to explain the suspension, its use of human review, steps to prevent similar errors, and how users can seek redress; it does not announce a fine or impose a remedy.
Connecticut joined the FTC and attorneys general from 19 other states in suing Dollar General, alleging that it repeatedly charged customers more at checkout than prices displayed on shelves, tags, and advertisements. The complaint alleges years of overcharging and insufficient safeguards, but the release does not report a settlement, court order, or monetary penalty.
$500K
Connecticut Attorney General William Tong announced settlements with SunRun, Inc., Elevate Solar Solutions, and two salespeople over allegations of deceptive solar sales, including impersonating consumers and locking homeowners into long-term contracts without consent. SunRun must pay $300,000 and provide consumer relief; Elevate and the salespeople face a stated $200,000 penalty, with $100,000 suspended subject to ongoing compliance.