The Baby Formula Probe Produced a Pile of Evidence. Then the DOJ Dropped the Case.
June 30, 2026

(WSJ) – Some prosecutors believed they had enough to charge Abbott Laboratories, but senior officials opted for civil settlement
Some prosecutors believed they had evidence to criminally charge the company under a law they have used to pursue other businesses for allegedly selling contaminated foods, according to people familiar with the matter. Some supervisors also thought it was a good case, they said. Top decision makers instead closed the probe, the people said, opting for a lighter-touch option: clawing back money the company earned from selling formula through federally funded nutrition programs.
The outcome, which hasn’t been previously reported, illustrates how the Justice Department under President Trump has moved away from strict approaches to corporate enforcement and raised the bar for punishing companies. (Read More)