Minneapolis-based Medtronic, a medical device manufacturer, has agreed to pay $2.8 million in a multi-state and federal settlement to resolve allegations the company violated the False Claims Act, according to Pennsylvania's Office of the Attorney General.
The settlement will resolve allegations brought by 36 states against Medtronic. The states alleged Medtronic and its subsidiary Medtronic Minimed improperly solicited Medicaid recipients to use its insulin infusion pumps in violation of federal anti-solicitation rules.
As a result of the improper solicitation, Medtronic submitted fraudulent claims to the states' Medicaid programs to receive reimbursement for the replacement insulin pumps, according to the report.
The lawsuit against Medtronic was filed in 2011 by a former Medtronic employee in the U.S. District Court for the Northern District of Texas.
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