New York Attorney General Letitia James has facilitated the donation of $6,300 worth of baby formula to families in Brooklyn. This action follows an investigation by the Office of the Attorney General (OAG) into Paragon USA & Co. LLC for price gouging during the 2022 national baby formula shortage. As part of a settlement with OAG, Paragon paid a $10,000 penalty and is required to donate an additional $35,000 in either baby formula or cash.
The Women's Empowerment Coalition of New York City and Mixteca will distribute the donated formula to families in need across Brooklyn. These organizations primarily serve Muslim and Latino communities in New York City.
Attorney General James stated, “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.” She emphasized her commitment to addressing businesses that engage in price gouging during emergencies.
Somia Elrowmeim, CEO and Founder of the Women’s Empowerment Coalition of New York City, expressed gratitude for the donation: “We extend our deepest gratitude to the New York State Office of the Attorney General for their generous donation.”
Lorena Kourousias, Executive Director at Mixteca, highlighted the importance of this support amid ongoing economic challenges: “This donation will directly support immigrant families in Brooklyn who continue to face economic hardship.”
In 2022, Abbott Laboratories closed one of its manufacturing plants and recalled its products due to safety concerns. This led to a significant shortage and price increases for baby formula nationwide. The OAG found that Paragon increased prices by more than 20% after Abbott's recall announcement.
Senator Andrew Gounardes remarked on the situation: “Let this be a message to all unscrupulous companies: New York won't let you get away with price gouging.” Senator Zellnor Myrie also praised Attorney General James’ efforts: “I’m grateful...for securing this settlement.”
Assemblymember Marcela Mitaynes added her voice in support: “Every family deserves access to the essentials they need...and no one should have to struggle because of corporate greed.” Councilmember Shahana Hanif thanked Attorney General James for her thorough investigation into Paragon's practices.
Attorney General James has been active in protecting consumers against price gouging beyond this case. In March 2025 alone, she secured over $344,000 worth of baby formula donations for Bronx families as part of other settlements with suppliers Marine Park and Formula Depot.
New Yorkers can report potential price gouging issues online or via phone through OAG's contact channels.
The case was managed by Assistant Attorney General Benjamin C. Fishman under Bureau Chief Jane M. Azia's supervision within OAG's Consumer Frauds and Protection Bureau.