Abbott Labs Faces Two Lawsuits for Alleged Formula-Making Lapses

Abbott Laboratories, a major infant formula manufacturer, was hit with two shareholder derivative suits alleging its board breached fiduciary duties by not implementing stronger oversight in its formula production.

The suits center on Abbott’s Sturgis, Mich., plant that was shut down in 2022 after the Food and Drug Administration found deadly bacteria in its powdered infant formula, Similac, and the company recalled the product. The recall led to a nationwide formula shortage.

Now, two separate pension funds allege Abbott’s directors ignored safety concerns for years before the recall. Both filed their complaints in the US District Court for the ...