Judge OKs Abbott’s $614-Million Settlement

Abbott Laboratories, maker of the nutritional drink Ensure, will pay $614 million in civil and criminal penalties to end a U.S. probe of the company’s marketing practices and Medicaid and Medicare reimbursements.

A federal judge approved the settlement. Abbott’s CG Nutritionals unit pleaded guilty in July to obstructing a criminal investigation.

Abbott took a charge of 34 cents a share in the second quarter for the accord.

The CG unit was ordered to pay a $200-million criminal fine, and Abbott will pay $414 million in a civil settlement on behalf of its Ross Products unit.

Shares of the Abbott Park, Ill.-based company rose $1.02 to $42.45 on the NYSE.

From Bloomberg News