Perrigo Proposes $10 Million Infant Formula Settlement
The company seeks to resolve allegations that it conspired with Gerber to artificially inflate store-brand formula prices.
Updated on Oct. 15, 2026 in Consumer Goods
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Perrigo has proposed a $10 million settlement to resolve class-action allegations of anticompetitive behavior in the store-brand infant formula market. The agreement, filed in federal court, would address claims that the company restricted competition to inflate prices for families.
Why it matters
The lawsuit alleges that a collusive arrangement between Perrigo and Gerber limited supply access for rival manufacturers, potentially increasing costs for parents. The proposed resolution aims to settle these claims while establishing new supply conduct standards.
Perrigo has agreed to a $10 million settlement to cover eligible store-brand infant formula purchases made since April 2020. Additionally, the firm committed to a three-year moratorium on anticompetitive supply agreements.
The players
Perrigo
Perrigo is a multinational manufacturer of consumer self-care products and store-brand infant formulas.
Gerber
Gerber is a prominent producer of infant nutrition products and a central entity in the alleged anticompetitive arrangement.
The details
The litigation alleges that Gerber granted Perrigo a right of first refusal on excess supply, effectively curbing the ability of competitors to enter the store-brand market. While Perrigo denies any wrongdoing, the deal includes a commitment to cooperate with the ongoing case against Gerber.
Timeline
Purchases made from April 2020 onwards qualify for the settlement class.
The proposed settlement was filed in federal court on October 13, 2026.
Perrigo must adhere to non-compete restrictions for a duration of 3 years.
Market Landscape
This settlement highlights the intensifying scrutiny on supply chain agreements that may suppress market competition. It positions Perrigo to pivot away from past allegations while providing a roadmap for similar industry-wide legal challenges.
Millions of U.S. families who purchased store-brand infant formula since April 2020 may be eligible for compensation once the settlement is finalized. Consumers should monitor court announcements to confirm their eligibility and the process for filing a claim.
The takeaway
This proposed settlement offers a path for resolution regarding long-standing concerns about pricing in the infant nutrition sector. Families should continue to watch for future court dates that will dictate when and how the settlement funds are distributed.
Further reading
For more context on how market regulations affect retail availability, see the Consumer Goods section.
Source note: This article includes information reported by International Business Times UK.
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