Federal Judge Tosses Class Action Over Abbott Baby Formula Shortage

CHICAGO — A federal judge last week dismissed a class action suit accusing Abbott Labs of unjust enrichment resulting from its baby formula recall and production shutdown.

Filed on behalf of people who bought Similac, Alimentum or EleCare infant formula during the past three years, the complaint alleged the North Chicago-based corporation illegally profited off the temporary shuttering of its Sturgis, Michigan, facility in February 2022.

The plant was closed for months after the Food and Drug Administration issued a recall for several brands of powdered formula during an investigation into contamination by the harmful Cronobacter sakazakii bacteria.

U.S. District Judge Matthew Kennelly ruled on April 10 that the attorneys for the California, Ohio and Utah residents named as a plaintiffs in the case had failed to state a claim.

"The plaintiffs argue that Abbott's retention is unjust because its own misconduct led to the shutdown of the Sturgis facility, the formula shortage, and related price increases," Kennelly said.

With the Michigan formula plant responsible for 20 percent of the nation's production, during the shutdown Abbott was operating with its capacity reduced by 40 percent.

"Even accepting the facts as alleged and drawing inferences in the plaintiffs' favor, this contention cannot survive a motion to dismiss," he said. "Specifically, even if one assumes that the plaintiffs conferred a benefit on Abbott by paying increased prices for its products during the shortage, they have not plausibly alleged that Abbott's retention of that benefit is unjust under the circumstances."

None of the people suing Abbott alleged that they were harmed by the products they purchased.

Rather, the plaintiffs claimed that Abbott had some kind of obligation to maintain certain levels of infant formula production or make sure its price remained stable.

"The plaintiffs' generalized allegations on this point are insufficient to satisfy the 'enrichment' component of unjust enrichment, even if the plaintiffs could satisfy the 'unjust' component," the judge said, in a 10-page order.

But they cannot, Kennelly ruled, "as they have not plausibly alleged that Abbott was under any obligation to them to continue producing formula, maintain a particular supply level, or keep prices down."

Kennelly set a May 3 deadline to amend the complaint with "at least one viable claim" before closing the door on the allegations for good.

Related:

• Judge Dismisses Many Of Claims Against Abbott Labs Over Baby Formula
• Parents File Class Actions Over Abbott's Recalled Baby Formula
• Abbott Baby Formula Whistleblower Complaint First Filed February 2021
• Abbott Restarts Baby Formula Production At Michigan Plant
• FDA Chief Testifies About Abbott Labs Recall, Unsanitary Conditions