FRIDLEY, Minn. (AP) — Medical device maker Medtronic Inc. will pay the U.S. Department of Justice $9.9 million to settle a lawsuit that accused the company of giving doctors gifts in return for using its defibrillators and pacemakers.
Medtronic has not admitted any wrongdoing as a result of the settlement. The lawsuit unsealed this week accused Medtronic of funneling "millions of dollars in unrestricted grant money to physicians" to get them to encourage the use of Medtronic defibrillators and pacemakers.
"Improper financial incentives have the potential to compromise physician medical judgment," said Assistant Attorney General Stuart F. Delery of the Justice Department's Civil Division. "This case demonstrates the Department of Justice's commitment to pursue medical device manufacturers that use improper financial relationships to influence physician decision-making."
Medtronic said the settlement brings to a close a long-running review dating back to 2001 and that it has taken steps to prevent inappropriate sales practices, including voluntarily disclosing payments to health care professionals on its website.
"Over the last several years we have adopted a number of important policies and procedures related to collaboration with health care professionals," the company said.
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