Ambu, a medical devicemaker based in Denmark, will pay $3.3 million to settle allegations it violated the False Claims Act by selling products to the U.S. Department of Veterans Affairs and the Pentagon made in countries without U.S. trade agreements, the U.S. Justice Department said.
The Justice Department claims Ambu manufactured medical products in China and Malaysia and sold them to U.S. government agencies in violation of the Trade Agreements Act, which requires that products sold to government agencies must only come from countries that have a trade agreement with the U.S.
The settlement resolves allegations that Ambu submitted false claims to the Defense Logistics Agency and Department of Veterans' Affairs about the manufacturing of the devices and payments related to the sale of the medical supplies.
"Congress passed the Trade Agreements Act as an important part of the U.S. economic, diplomatic, and defense strategy," said U.S. Attorney William McSwain. "Contractors must follow the law and manufacture their products in TAA-compliant countries, whether they like it or not. By investigating the allegations and reaching a settlement in this case, we have put all companies doing business with the U.S. government on notice that the TAA is an important law that must be respected."