Medical Device Company to Pay $4.41 Million for Declaring False Country of Origin
A medical device company and several of its affiliates have agreed to pay $4.41 million to resolve allegations that they violated the False Claims Act by making false statements to federal agencies regarding the country of origin of certain products sold to the U.S., the Department of Justice announced recently.
The Trade Agreements Act of 1979 generally requires companies selling products to the U.S. to manufacture them in the U.S. or another designated country. The U.S. alleged that between 2007 and 2014 the medical device company sold to federal agencies products it certified would be made in the U.S. or other designated countries but that were in reality manufactured in China and Malaysia, which are prohibited countries under the TAA.
According to the DOJ, the settlement resolves allegations originally brought in a lawsuit filed by three whistleblowers under the qui tam provisions of the False Claims Act, which allow private parties to bring suit on behalf of the government and share in any recovery. In this case, the relators will receive a total of $749,700 of the recovered funds.