Paragon USA Co., LLC, Price Gouging, New York, 2022

New YORK – The Office of the New York Attorney General (OAG) announced today that it has secured over $13,500 worth of baby formula from Paragon USA & Co., LLC (Paragon) for Rochester families. This donation stems from a settlement with Paragon for price gouging during the 2022 national baby formula shortage.

Attorney General Letitia James commented on the situation, saying, ‘During a nationwide baby formula shortage, Paragon took advantage of New York families by illegally raising prices.’

In response to the recall of baby formula from Abbott Laboratories in 2022, which significantly impacted supply and led to skyrocketing prices, the OAG conducted an investigation into Paragon. The company was found to have raised prices over 20 percent after the recall announcement, generating tens of thousands of additional dollars in revenue.

As part of the settlement, Paragon has paid a $10,000 penalty and is required to donate an additional $35,000 worth of baby formula or cash. Today’s donation marks the third secured by Attorney General James from Paragon, following donations to families in Westchester and Brooklyn. To date, over $21,400 worth of baby formula has been donated.

Foodlink, a community organization that serves the Greater Rochester and Finger Lakes regions, will distribute today’s donation to families in need. Julia Tedesco, President & CEO of Foodlink, expressed gratitude for Attorney General James’ continued support in helping struggling families.

Senator Jeremy Cooney echoed concerns about the impact on parents, stating, ‘No parent should be forced to choose between paying their bills or feeding their child.’

RELATED: Paragon USA Hit with $10,000 Fine for Gouging Baby Formula Prices