New York Attorney General Letitia James has announced the delivery of over $13,500 worth of baby formula to families in Rochester. This donation is part of a settlement with Paragon USA & Co., LLC, following an investigation by the Office of the Attorney General (OAG) into price gouging during the 2022 national baby formula shortage. Paragon was found to have raised prices by more than 20% after Abbott Laboratories recalled formula and closed a manufacturing plant, exacerbating supply issues.
Attorney General James stated, "During a nationwide baby formula shortage, Paragon took advantage of New York families, illegally raising the price on formula to squeeze extra profits." She emphasized that her office ensured accountability and relief for affected families. The donation will be distributed by Foodlink, which serves the Greater Rochester and Finger Lakes regions.
Julia Tedesco, President & CEO of Foodlink, expressed gratitude for the support from Attorney General James: “Our partners have highlighted a growing need for baby products and other essential items... This generous contribution will greatly benefit our members and their clients who are in urgent need of formula.”
The settlement requires Paragon to pay penalties totaling $45,000. This includes a $10,000 penalty already paid to the state and an additional $35,000 in donated formula or cash due by June 10, 2025. Previous donations secured under this settlement included $1,500 worth of formula for Westchester families in February and $6,300 for Brooklyn families in March.
Senator Jeremy Cooney praised Attorney General James' efforts: “When businesses illegally jack up prices for goods like baby formula, they must be held accountable.” Assemblymember Jen Lunsford also acknowledged the impact on struggling families: “This donation goes such a long way for Rochester children.” Assemblymember Demond Meeks commended James' actions against corporate greed during the shortage.
Attorney General James continues her work against price gouging through various settlements and initiatives. In March 2025 alone, she secured over $344,000 worth of baby formula donations to Bronx families as part of another settlement. Her office encourages New Yorkers to report any price gouging concerns online or via phone.
The matter was managed by Assistant Attorney General Benjamin C. Fishman with oversight from Bureau Chief Jane M. Azia and Deputy Bureau Chief Laura J. Levine within the Consumer Frauds and Protection Bureau.