Almost all of the infant formula fed to preterm infants is manufactured by either Abbott Laboratories (which manufactures Similac) or Mead Johnson (which manufactures Enfamil). Both companies have a long history of unethical — and even criminal — business practices.
Abbott Laboratories
Abbott Laboratories, based in Abbott Park, Illinois, operates in over 160 countries, with more than 100,000 employees spread around the world. In 2023, Abbott’s sales were $39.4 billion, and its net profits were $3.26 billion.
In 2022, Abbott was forced to recall its powdered infant formula produced at the Sturgis, Michigan plant because of contamination with Cronobacter sakazakii, a dangerous bacteria. This contamination led to infant hospitalizations, and the FDA investigated the plant and found several problems.
In 2012, Abbott Laboratories agreed to pay $1.5 billion to resolve criminal and civil investigations related to the unlawful promotion of the drug Depakote. The company promoted Depakote for off-label uses, such as controlling agitation in elderly dementia patients and treating schizophrenia, which were not approved by the FDA. Abbott pleaded guilty to misbranding the drug and was subject to court-supervised probation and reporting obligations.
In 2010, the U.S. Equal Employment Opportunity Commission (“EEOC”) sued Abbott Laboratories for age discrimination.
Abbott’s Chief Executive Officer (“CEO”) is Robert B. Ford, whose total compensation in 2023 was $19,602,891:
- Base salary: $1.5 million
- Bonus: $2.945 million
- Stock options: $7,437,649
- Stock award: $7,436,600
- Other compensation: $283,392
While Abbott continues to manufacture a dangerous infant formula that causes infants to die, its CEO makes $53,706.55 a day in compensation, and Abbott makes $3.26 billion — more than $8.9 million a day — in after-tax profits. If your infant has been harmed by Abbott’s Similac infant formula, we believe that some of those profits should be paid to you to compensate for your pain and suffering.
Mead Johnson
Mead Johnson, headquartered in New Brunswick, New Jersey, operates in over 90 countries and is known for its Enfamil brand. Now part of Reckitt, in 2023 Mead Johnson reported revenues of $4.2 billion.
In 2015, Mead Johnson paid $12 million to settle allegations that it had violated the U.S. Foreign Corrupt Practices Act (“FCPA”). This law is meant to prevent bribery of foreign officials, but Mead Johnson’s distributors in China bribed healthcare professionals to promote and sell its products.
In 2024, Mead Johnson settled allegations that its infant and toddler formulas contained elevated levels of lead without proper warnings, agreeing to pay nearly $2 million and take steps to reduce lead levels in its products.
Mead Johnson has faced numerous lawsuits related to its marketing practices, including allegations of deceptive advertising and anti-competitive behavior. These lawsuits involve claims that the company misled consumers about the nutritional value of their products.
In 2012, the company faced a major federal investigation related to its infant formula marketing practices. The U.S. Department of Justice investigated Mead Johnson for potentially violating the False Claims Act. Specifically, the company was accused of improperly marketing its Enfamil infant formula to state Medicaid programs, potentially overcharging the government.
In 2018, Mead Johnson was involved in a class-action lawsuit alleging price fixing of infant formula. The lawsuit claimed that Mead Johnson, along with other major formula manufacturers, conspired to artificially inflate prices of infant formula, harming consumers through anti-competitive practices.
Mead Johnson generates over $11.5 million a day in revenues. If its Enfamil has caused your child to develop NEC, Mead Johnson should compensate you. At no cost to you, The Infant Formula Institute will match you up with an outstanding law firm which will obtain the highest possible settlement for you.