New YORK – The Office of the Attorney General (OAG) under New York Attorney General Letitia James has secured a significant victory for Rochester families. Paragon USA & Co., LLC, a supplier in the baby formula market, was penalized for price gouging during the 2022 national shortage.
In response to the investigation, Paragon paid a $10,000 penalty and committed an additional $35,000 worth of baby formula or cash as part of a settlement. The donation will be distributed by Foodlink to families in need across Rochester.
Attorney General James emphasized the importance of holding companies accountable: ‘During a nationwide baby formula shortage, Paragon took advantage of New York families, illegally raising the price on formula to squeeze extra profits.’
The investigation revealed that Paragon increased prices by over 20 percent following Abbott Laboratories’ recall of its manufacturing plant. As a result, Attorney General James issued warnings to more than 30 retailers across the state to cease excessive pricing.
Paragon’s penalty and donation are part of a larger effort by the OAG to provide relief during the formula shortage. To date, Attorney General James has donated over $21,400 worth of baby formula from settlements with Paragon.
Senator Jeremy Cooney praised the efforts: ‘No parent should be forced to choose between paying their bills or feeding their child. When businesses illegally jack up prices for goods like baby formula, they must be held accountable.’
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Key Facts
- State: New York
- Agency: NY AG
- Category: Public Corruption|Fraud & Financial Crimes
- Source: Official Source ↗
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