Medtronic pays $4.4M to settle with feds over product sourcing

Medtronic has settled allegations that it sold the federal government medical devices that failed to meet a requirement that they be manufactured in the United States or certain trading partners.

Federal authorities alleged Medtronic sold the departments of Defense and Veterans Affairs spinal and other products manufactured in two ineligible nations: China and Malaysia. Medtronic will pay $4.4 million to settle the matter.

Congress has mandated that products sold to the federal government should come from the U.S. or selected nations. Medtronic denied any wrongdoing and said the overwhelmingly majority of its products are made in the U.S. or within nations that are approved trading partners, such as Ireland.

"Congress has stated that we need to source in certain way," said Ann Bildtsen, an assistant U.S. Attorney. "And companies that sell to the United States promise that they're going to sell products from the approved countries."

Whistleblowers who brought the matter to the government's attention will split $750,000.