According to the U.S. Department of Justice, St. Jude Medical Inc will settle an investigation into allegations that it overcharged the government for replacement defibrillators and pacemakers. The Minnesota-based company will pay nearly $3.7 million in the settlement.
According to the Justice Department investigators, St. Jude overcharged the Department of Veterans Affairs and the Department of Defense by failing to give the “generous credits available should a device need to be replaced while covered under warranty,” even though it advertised that it would.
St. Jude said it was not admitting wrongdoing or liability by settling, but is please to resolve the investigations. The case was started as a whistleblower lawsuit brought by two people, which was later joined by the government.
The individuals who brought the whistleblower claim will receive $730,000 from the settlement.