Abbott Laboratories is facing another investigation into its role in last year’s baby formula shortage that left millions of American families scrambling for vital nutrition products.
Last month, Abbott received a civil investigative demand from the U.S. Federal Trade Commission seeking information in connection with its probe of companies that participate in bids for formula contracts, according to a financial statement filed Friday with the U.S. Securities and Exchange Commission. The investigation could lead to a lawsuit by the FTC if the agency finds Abbott engaged in anti-competitive conduct, such as collusion with other manufacturers on pricing.
For decades, Abbott and peers Perrigo Co., Nestle SA and Mead Johnson Nutrition Company have held tight control over the infant formula market in the United States. The risks from that level of market consolidation were brought into sharp relief last year, when millions of formula cans were recalled from Abbott’s plant in Sturgis, Michigan, after several infants got sick.
