Why Is Abbott Stock Moving Today?

Abbott stock is moving today because the Justice Department announced that Abbott agreed to pay $384,999,040 to settle False Claims Act allegations tied to powdered infant formula made at its Sturgis, Michigan and Casa Grande, Arizona plants. The first headline crossed MoveSurge's tape at 11:45:27 ET on Monday, September 14, 2026 with the stock at $103.96; it measured -0.455% after one minute and -0.628% after ten, and Abbott still closed up 1.12% at $103.09.

Abbott had been up 1.97% from Friday's close of $101.95 when the settlement crossed, and it finished 0.84% below that price. Health care stocks rose broadly on Monday, and Abbott's gain trailed the sector fund and the large medical device makers.

What the Justice Department says Abbott did

The government alleged that Abbott caused false claims to be submitted to federal and state programs, including Medicaid and WIC, for powder infant formula and nutritional therapy products made at the two plants between January 1, 2018 and December 31, 2022. The complaint said Abbott made formula paid for with taxpayer dollars in an environment that put it at unacceptable risk of microorganism contamination, failed to maintain manufacturing equipment, failed to control water that fostered microorganism growth, and promoted a culture of concealment. The settlement contains no finding of liability, Abbott did not admit wrongdoing, and the department closed a related criminal investigation.

Abbott infant formula settlement terms

The case was brought by three former Abbott employees, Scott Millard, Kristine Cooper and Loren Cooper, under the whistleblower provisions of the False Claims Act.

Abbott's reaction to each settlement headline, measured minute by minute

Most of the measured reaction came on the first headline. The second, three minutes later, moved the stock far less.

Health care stocks on Monday

Boston Scientific, Medtronic and Stryker rose between 2.29% and 4.82%, and the sector fund gained 1.45%. Abbott's 1.12% finished ahead of Johnson & Johnson's 0.28%.

How Abbott's infant formula cases have developed

1. February 2022 — The FDA warned consumers against certain powdered Similac, Alimentum and EleCare formulas from the Sturgis plant. Abbott recalled the products and halted production there, and a nationwide infant formula shortage followed.
2. 2022 — Three former employees filed the False Claims Act complaint over formula made at Sturgis and Casa Grande.
3. Thursday, August 20, 2026 — Abbott agreed to pay about $670 million to resolve claims involving about 2,000 people over its specialty formulas for preterm infants. From $114.55, the stock measured -0.314% after one minute and -0.698% after 15 minutes.
4. Monday, September 14, 2026 — The Justice Department announced the $384,999,040 settlement, and Abbott measured -0.628% in ten minutes.

The two settlements add up to about $1.05 billion. Abbott closed Monday 10.0% below the $114.55 it traded at when the preterm formula agreements crossed on August 20.

How these numbers were measured

Session moves compare each Monday close with Friday's close. Headline reactions are MoveSurge's own measurement, from the price just before each headline crossed our tape to one, ten or 15 minutes later. The pipeline is described on our editorial standards page.