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French prosecutors are investigating companies like Nestle and Danone over contaminated baby formula. Here's the latest
CNBC· 2026-02-16 16:29
Core Viewpoint - A crisis has emerged over contaminated baby formula, leading to multiple product recalls and investigations into major dairy companies, causing concern among parents and investors [1] Group 1: Investigation and Legal Actions - The Paris public prosecutor has opened investigations into five companies, including Nestle, Danone, and Lactalis, regarding potentially contaminated infant nutrition products [1] - The investigation is based on allegations of "deception regarding goods posing a danger to human health," which could result in penalties of up to seven years in prison and fines up to €3.75 million ($4.45 million) [3] Group 2: Health Concerns - Recalls were initiated due to possible contamination with cereulide, a toxin that can cause nausea, vomiting, and diarrhea, with symptoms typically resolving within a day but potentially leading to severe complications [2] - The French health ministry is investigating three reported baby deaths linked to the consumption of the recalled infant formula, although no causal link has been established yet [5] Group 3: Company Responses - Nestle's CEO expressed regret over the distress caused to parents and customers, emphasizing that safety and well-being are the company's highest priorities [4]