New York Attorney General Letitia James on March 20 donated $6,300 worth of baby formula to Brooklyn families following an investigation into price gouging by baby formula supplier Paragon USA & Co. LLC.
The donation is part of a broader settlement that also includes a $10,000 penalty and a $35,000 commitment for further donations or cash to support families in need, according to a press release.
The investigation was prompted by reports that Paragon raised the prices of baby formula during the nationwide shortage in 2022. The company’s price hikes occurred after Abbott Laboratories, one of the country’s largest baby formula producers, shut down a major plant and recalled several of its products.
“Taking advantage of a crisis to squeeze extra profits from families who are struggling to feed their children is not only heartless, it’s illegal,” said James.“During a massive shortage of baby formula in 2022, suppliers like Paragon raised their prices while New York families scrambled to find affordable baby formula. My office took action, and we are delivering free formula to families in need. I will continue to go after any business that price gouges during an emergency.”
The donated formula will be distributed to Brooklyn families by two Brooklyn organizations: the Women’s Empowerment Coalition of New York City and Mixteca. These groups primarily serve Muslim and Latino communities in the borough, and the formula will help support low-income families still facing economic hardships and the lingering effects of the pandemic.
“Empowering survivors of domestic violence and supporting low-income families is not just an act of charity—it is a fundamental step toward building a just and compassionate society,” said Somia Elrowmeim, the chief executive officer and founder of the Women’s Empowerment Coalition of New York City. "Every act of support helps rebuild lives, restore dignity and create new opportunities."
Lorena Kourousias, the executive director of Mixteca, said families who were feeling the pinch of inflation would benefit from the donation.
"This donation will directly support immigrant families in Brooklyn who continue to face economic hardship and barriers to essential resources," she said.
