SEC Investigates Abbott Over Infant Formula Shortage as New Recalls Issued for Enfamil Infant Formula

by M.C. Millman

The Securities and Exchange Commission and the Federal Trade Commission are investigating the factors that led Abbot Laboratories to shut down its Michigan plant, triggering nationwide formula shortages last year. 

Abbott related in a filing last Friday that they received a subpoena from the SEC's Enforcement Division in December 2022 requesting "information about its powder infant-formula business and related public disclosures."

Abbott Laboratories controlled 40% of the United State's baby-formula market at the time of its Michigan plant shutdown last February.

The newest investigation follows on the heels of several others, including a subpoena issued in December 2022 by the SEC's Enforcement Division requesting information about the company's powder infant formula business and related public disclosure. Also in January, the FTC issued a civil investigative demand of all formula companies that bid for infant formula contracts for federal programs, including the Special Supplemental Nutrition Program for Women, Infants, and Children, or WIC. Also in January, the U.S. Justice Department began investigating Abbott's Michigan plant operations. 

In other formula news sparking fears of a new shortage, 145,000 cans of Enfamil infant formula have been recalled over contamination concerns.

"No consumers have reported adverse reactions to the product," the company said in a statement Monday. 

The infant formula containers which are being recalled were manufactured between August 2022 and September 2022. The batches have the numbers ZL2HZ.

photo credit: Flickr