Attorney General James Delivers Over $13,500 Worth of Baby Formula to Rochester Families

NEW YORK – New York Attorney General Letitia James today announced that her office secured more than $13,500 worth of baby formula from baby formula supplier Paragon USA & Co., LLC (Paragon) for families in Rochester. The donation is the result of an investigation conducted by the Office of the Attorney General (OAG) into Paragon for price gouging during the national baby formula shortage in 2022. As part of a settlement with OAG, Paragon has paid a $10,000 penalty and must pay an additional $35,000 in donated baby formula or cash. Today’s donation will be distributed to families in need across Rochester by Foodlink, a community organization that serves the Greater Rochester and Finger Lakes regions.

“During a nationwide baby formula shortage, Paragon took advantage of New York families, illegally raising the price on formula to squeeze extra profits,” said Attorney General James. “My office made sure Paragon was held responsible for their illegal action and guaranteed that hard-working families in New York received relief. I thank Foodlink and all its partner organizations for distributing this baby formula to help Rochester families in need.”

“We are thankful to Attorney General James for once again providing Foodlink and our new Health & Wellness initiative with additional baby formula,” said Julia Tedesco, President & CEO of Foodlink. “Our partners have highlighted a growing need for baby products and other essential items, especially as grocery prices remain historically high. This generous contribution will greatly benefit our members and their clients who are in urgent need of formula.”

In 2022, Abbott Laboratories closed one of its baby formula manufacturing plants and recalled formula produced there, creating significant hardship for families throughout New York and the nation as formula supplies dwindled and prices rose. Abbott produces over 40 percent of the infant formula sold in the United States, and the plant it closed was responsible for approximately one fifth of total U.S. production.

New York’s price gouging laws prohibit vendors from unconscionably increasing prices on goods that are vital to consumers’ health, safety, or welfare during market disruptions such as the 2022 formula shortage. In May 2022, Attorney General James issued warnings to more than 30 retailers across the state to stop overcharging for baby formula after consumers reported unreasonably high prices.

The OAG’s investigation found that Paragon, which supplies formula to retailers in New York, generated tens of thousands of dollars in additional revenue by raising prices more than 20 percent after Abbott announced its recall.

As a result of a settlement with OAG, Paragon must pay penalties and make formula donations with a combined value of $45,000. This includes a $10,000 penalty to the state that Paragon has already paid and an additional $35,000 that can be paid in the form of donated formula or cash that must be delivered by June 10, 2025.

Today’s donation is the third secured by Attorney General James as part of the settlement with Paragon. In February, Attorney General James secured the donation of $1,500 worth of baby formula to families in Westchester, and in March, $6,300 worth of baby formula to families in Brooklyn. To date, Attorney General James has donated more than $21,400 worth of baby formula as a result of the settlement with Paragon.

“No parent should be forced to choose between paying their bills or feeding their child,” said Senator Jeremy Cooney. “When businesses illegally jack up prices for goods like baby formula, they must be held accountable. I applaud Attorney General James for once again protecting consumers and ensuring Rochester families get the relief they deserve.”

“Families are struggling to make ends meet with inflation and an economy on the brink of a recession, so this donation goes such a long way for Rochester children, who are already amongst the neediest in the nation,” said Assemblymember Jen Lunsford. “I am grateful to Attorney General James for doggedly pursuing these bad corporate actors and holding them accountable for their opportunistic money grab.”

Attorney General James is a leader in the fight to protect New York consumers and guard against price gouging. As part of a $675,000 settlement with formula suppliers Marine Park and Formula Depot, Attorney General James secured the donation of over $344,000 worth of baby formula to families in the Bronx in March 2025 and $140,000 worth of formula to families in Rochester in December 2024. In October 2024, Attorney General James led a multistate coalition urging Congressional leaders to support a national ban on price gouging. In March and April 2024, Attorney General James distributed over 9,500 cans of baby formula in Buffalo and New York City from a settlement with Walgreens for price gouging during the formula shortage. In May 2023, Attorney General James secured a $100,000 settlement with Quality King Distributors, Inc. due to unconscionable price increases for Lysol products during the early days of the COVID-19 pandemic. In April 2021, Attorney General James delivered 1.2 million eggs to food pantries throughout the state which were secured as part of an agreement with the nation’s largest egg producers for price gouging in the early months of the pandemic.

New Yorkers should report potential concerns about price gouging to the OAG by filing a complaint online or calling 800-771-7755.

This matter was handled by Assistant Attorney General Benjamin C. Fishman, under the supervision of Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine, all of the Consumer Frauds and Protection Bureau. Former Data Scientist Jasmine McAllister also assisted in this matter, under the supervision of Director of Research and Analytics Victoria Khan, Deputy Director Gautam Sisodia, and former Director Megan Thorsfeldt. The Consumer Frauds and Protection Bureau is a part of the Division for Economic Justice, which is led by Chief Deputy Attorney General Chris D’Angelo and is overseen by First Deputy Attorney General Jennifer Levy.