Medtronic will pay $4.4 million to settle a lawsuit accusing the company of illegally selling Asian-made devices to the U.S. military, Minnesota U.S. Attorney Andrew Luger announced.
The suit alleged that the company violated the False Claims Act by relabeling devices made in China and Malaysia as manufactured in Memphis, Tenn., and selling them to the U.S. Veterans Affairs and Defense departments between 2007 and 2014. The devicemaker’s spinal division is in Memphis.
Federal law requires that devices sold to the military be manufactured in the U.S. or by specified international trading partners.
The devices at issue include anchoring sleeves that secure cardiac leads to patients, spinal surgery instruments and a handheld patient assistant used with a cardiac device.
The settlement allows Medtronic to resolve the case without admitting guilt. — Charlotte Astor