St. Jude Medical, a St. Paul, Minn.-based medical devicemaker, agreed to pay $3.65 million to settle allegations that it inflated the cost of replacement pacemakers and defibrillators purchased by the Defense and Veterans Affairs Departments. The Justice Department alleged that St. Jude “knowingly (failed) to apply pricing credits for devices that were explanted while covered under a product warranty” after actively promoting the longevity of these devices to physicians. The federal agency said St. Jude then submitted invoices that overstated the cost of the replacement cardiac rhythm management devices to VA hospitals and Defense Department military healthcare facilities. St. Jude said in a statement that it did not admit liability or wrongdoing.
Late News: St. Jude Medical settles inflation allegations
“We have reached a settlement agreement with the U.S. Department of Justice that fully resolves our previously disclosed investigation in Boston regarding implantable cardiac rhythm device warranty claims,” the company said. “We are pleased to have resolved this matter. The company maintains that its warranty practices were proper.” A whistle-blower lawsuit was filed in the U.S. District Court for the District of Massachusetts in 2008.
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