Minneapolis-based Medtronic has agreed to pay the federal government $4.4 million to resolve allegations it violated the False Claims Act, according to the Department of Justice.
The settlement stems from allegations that Medtronic made false statements to the U.S. Department of Veterans Affairs and the Department of Defense regarding certain products the company sold.
The Trade Agreements Act of 1979 generally requires companies selling products to the U.S. government to manufacture them in the U.S. or in other designated countries. Between 2007 and 2014, Medtronic certified certain products, including some instruments and devices used in spine surgeries, it sold to the VA and the DoD would be made in locations in compliance with the TAA. However, the government alleged the products were manufactured in China and Malaysia.
The allegations made against Medtronic were originally brought under the qui tam, or whistle-blower, provisions of the False Claims Act.
Although the company has agreed to this settlement, there has been no admission of wrongdoing.
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