Settlement reached between NY attorney general, Walgreens over baby formula shortage

The formula shortage started during the pandemic and then continued when Walgreens took part in price gouging in 2022, according to the settlment.

Lee Danuff and Adolfo Carrion

Apr 2, 2024, 9:25 PM

Updated 14 days ago

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Attorney General Letitia James announced on Tuesday that a settlement was reached with Walgreens over a baby formula shortage.
Millions of parents in New York dealt with a baby formula shortage during the COVID pandemic, and Walgreens was accused of price gauging the formula.
James said that as part of the settlement, Walgreens will donate 9,564 cans of baby formula to the Met Council in Queens County, as well as other nonprofits, which will distribute the formula to New Yorkers in need.
Walgreens will also pay a $50,000 penalty, and will refrain from any future price gouging.
James said in a press release that during the COVID pandemic, baby formula manufacturer Abbott Laboratories was facing contamination concerns and shut down a plant that made about 20% of the country's formula. It also recalled several of its popular formula products. The plant closure and recall contributed to the nationwide shortage of baby formula which was already in short supply due to supply-chain problems caused by the COVID pandemic.
According to the settlement, Walgreens engaged in price gouging following the collapse of Abbott, making formula not affordable for ma


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