New York Attorney General Letitia James on May 21 delivered more than $13,500 worth of baby formula to Brooklyn families, marking the final installment of a settlement with Paragon USA & Co., LLC over price gouging during the 2022 nationwide formula shortage.
“Companies should never be able to raise prices and squeeze extra profits from struggling New Yorkers during a crisis,” said James.
The donation was distributed by Mixteca, a Brooklyn-based nonprofit serving primarily Latino communities. It is part of a broader agreement in which Paragon paid a $10,000 penalty and provided $35,000 worth of baby formula to New York families. Paragon was found to have increased prices by more than 20% following the closure of an Abbott Laboratories facility, a major supplier responsible for a fifth of U.S. formula production.
The 2022 shortage followed a recall and shutdown at Abbott, which produces over 40% of U.S. infant formula. Prices surged nationwide, prompting James to issue warnings to more than 30 retailers in New York for excessive pricing.
Mixteca Executive Director Lorena Kourousias said the donation would provide vital nutrition to families experiencing hardship. “This support ensures that families in our community have access to essential nutrition for their little ones during a time of great need,” she said.
New Yorkers can report suspected price gouging to the OAG by visiting ag.ny.gov or calling 800-771-7755.
