Medical device maker Medtronic Inc. will pay $40 million to settle allegations the company paid doctors to use its products, the company said on Tuesday.
The allegations centered around its Memphis, Tenn.-based subsidiary Medtronic Sofamor Danek, which makes implants used in back surgery to stabilize a patient’s spine.
Medtronic said the settlement “is consistent with Medtronic’s assertion that the company and its current employees had not engaged in any wrongdoing or illegal activity.”
Medtronic said it has entered a five-year agreement to strengthen employee training and compliance programs for its sales and marketing practices.
The $40 million payment will go into escrow until two civil suits against Medtronic are dismissed, it said. The payment will be a one-time charge in its first quarter, which ends July 28.
