St. Jude Medical settles whistleblower case

by Bill Catlin, Minnesota Public Radio

ST. PAUL, Minn. — St. Jude Medical has agreed to pay $3.7 million to settle a whistleblower lawsuit.

Federal prosecutors in Massachusetts accused the Little Canada company of touting the longevity of its pacemakers and defibrillators to convince doctors to use them instead of a competitor's devices.

St. Jude allegedly offered generous credits if a device had to be replaced while covered under warranty. But the government says St. Jude failed to apply the credits.

Whistleblowers will receive $730,000 from the settlement amount.

St. Jude officials say they're pleased to resolve the matter but maintain the company's practices were proper and say the company admits no wrongdoing.