Medical devicemaker settles for $14.5M in country mix-up case

Medical device company Coloplast agreed to settle a U.S. lawsuit for $14.5 million after it self-reported a failure to offer contractual discounts and documented incorrect countries of origin for some products. 

The settlement involves claims of Denmark-based Coloplast violating the Trade Agreements Act and the Price Reduction Clause and overbilling the Department of Veterans Affairs for some medical products, according to a Dec. 12 news release from the Justice Department. 

Coloplast self-disclosed that it reported incorrect countries of origin for multiple products and some of them remained on its contract with the VA after switching manufacturing locations to non­designated countries. 

"We cannot overlook the great potential for harm when a company provides products from non-compliant countries," U.S. Attorney Matthew Graves said in a statement.

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