Medtronic Settles Lawsuit, to Pay US$4.4 Million
Published By : 03 Apr 2015 | Published By : QYRESEARCH
Looking to settle a lawsuit, medical device maker Medtronic has decided to pay US$4.4 million. The lawsuit was filed by the US federal government, who accused Medtronic of selling China as well as Malaysia manufactured medical devices to the US military.
According to the federal law, all medical devices that are sold to the US military have to be manufactured within the country or its international trading partners. Medtronic only recently moved its base from Fridley.
Andrew Luger, Minnesota US Attorney alleged that Medtronic purchased spinal surgery devices from China but relabelled them before selling them to the US military. According to the new labels, these spinal surgery devices have been manufactured in Memphis, Tennessee.
Spokesperson of Medtronic Cindy Resman issued a statement on behalf of the company, which stated that the medical device company has not yet made any admissions related to the issue at hand nor has it admitted that any of its activities were unlawful or improper. Spokeswoman Cindy Resman also said that most of Medtronic’s devices have been maid either in the U.S. or one of its trading partners such as Ireland or Mexico.
It is only in January that the company moved its headquarters to Dublin in Ireland. This investigation regarding the medical devices sold to the US military began in 2012. The federal government accused Medtronic as well as its affiliated companies Medtronic USA Inc., Medtronic Inc., and Medtronic Sofamor Danel USA Inc. of selling devices to the US Department of Defense and the US Veterans Affairs Department after stating that they were manufactured in the country or its trading partners.
The matter came to light when three whistleblowers filed a lawsuit against the company. The three will be receiving US$749,700 in this case.