Democratic Sen. Ron Wyden, D-Ore., is questioning Abbott Laboratories' business practices after the shutdown of one of the company's plants exacerbated the baby formula shortage in the U.S.
is demanding answers from the nation's largest baby formula manufacturer over its business practices while suggesting the GOP tax cuts could have contributed to the ongoing infant formula shortages in the U.S.
In a letter to Abbott Laboratories CEO Robert Ford dated Wednesday, Wyden accused the company of spending savings from the 2017 Tax Cuts and Jobs Act on stock buybacks rather than investing more to maintain and upgrade its Sturgis, Michigan, facility, which was shut down in February amid ainvestigation over concerns of bacterial contamination at the plant.
Senator Ron Wyden questions a witness before the Senate Finance Committee during a hearing on February 12, 2020, in Washington, DC. "I have long been concerned that windfalls from sweeping tax cuts for mega-corporations enacted by thewould be used for padding the pockets of corporate executives and wealthy shareholders," wrote Wyden, who is chair of the Senate Finance Committee. "It appears my concerns have been validated in this case, as Abbott chose spending billions on buying back its own stock instead of investing in critical upgrades to a plant essential to feeding our nation’s infants.
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