Dublin-based Medtronic has settled to pay $4.4 million to resolve a US lawsuit that accused the company of selling Asian medical devices to the American military as made in Tennessee.
Federal law has a strict policy that equipments sold to the military should be made in the U.S or its international business partners. Andrew Luger, Minnesota U.S Attorney suspected the Medtronic, which recently moved its headquarters from Fridley, bought spinal surgery devices that are not made in US. He alleged that they were brought from China and relabeled to show they had been manufactured in Memphis, Tennessee.
Medtronic became Ireland’s largest company when it made an acquisition worth $49.9 billion of Dublin-domiciled surgical supplies group Covidien earlier in this year. It moved its corporated headquarters to Ireland in a new holding company, Medtronic plc.
The lawsuit said the devices was sold to U.S Defense for a span of eight years from January 2007 to September 2014. The company spokesperson Cindy Resman said in a statement the company “makes no admission that any of its activities were improper or unlawful.” She also claims that majority of company products were manufactured in US or its business partners like Mexico or Ireland.