# Oregon DOJ Settles Abbott Infant Formula Case

The Oregon Department of Justice announced a **$384 million settlement** with Abbott Laboratories resolving allegations that the company sold infant formula produced under unsafe manufacturing conditions to taxpayer-funded programs including Medicaid and WIC. This settlement, finalized on September 14, 2026, underscores heightened enforcement scrutiny on manufacturers supplying essential nutritional products to government programs and reinforces the critical importance of compliance with safety and quality standards in government procurement.

- Procurement professionals should note increased regulatory and legal risks for suppliers of nutritional products to federal and state assistance programs
- Agencies administering Medicaid and WIC programs may intensify supplier vetting and monitoring to ensure product safety and program integrity
- Contractors and manufacturers must prioritize adherence to manufacturing safety standards to avoid costly settlements and reputational damage
- Organizations involved in government nutrition program supply chains can leverage this development to emphasize compliance and quality assurance in contract proposals

**Jurisdictions:** sled
**Industries:** Healthcare
**Topics:** Regulatory Compliance
**Published:** September 14, 2026

### Government Entities
- Oregon Department of Justice
- U.S. Department of Agriculture (USDA)
- Medicaid Fraud Control Units (MFCU)
- Medicaid
- WIC (Special Supplemental Nutrition Program for Women, Infants, and Children) (WIC)

### Vendors
- Abbott Laboratories (manufacturer and settlement payor)

### Key Quotes
> Abbott Laboratories broke that trust and used taxpayer dollars to do it. We will hold companies accountable when they put people 	6 in this case babies 	6 at risk.
> — Dan Rayfield, Attorney General

### Sources
- [AG Rayfield: Abbott to Pay Over $384 Million After Selling Taxpayer-Funded Programs Baby Formula Made in Unsafe Conditions - Oregon Department of Justice  : Media](https://www.doj.state.or.us/media-home/news-media-releases/ag-rayfield-abbott-to-pay-over-384m-after-selling-baby-formula-made-in-unsafe-conditions/) - OR