Medical device maker Medtronic settles federal lawsuit for $4.4 million, no admission of guilt

Medtronic has agreed to pay $4.4 million to settle a lawsuit filed by the federal government accusing the company of selling medical devices made in China and Malaysia to the U.S. military.

Federal law requires that devices sold to the military be manufactured in the U.S. or its international trading partners. Minnesota U.S. Attorney Andrew Luger alleged Medtronic, which recently moved its headquarters from Fridley, bought spinal surgery devices in China and relabeled them to indicate they had been manufactured in Memphis, Tennessee.

Medtronic spokeswoman Cindy Resman said in a statement the company "makes no admission that any of its activities were improper or unlawful." Resman says the majority of Medtronic's products are manufactured in the U.S. or its trading partners, such as Mexico or Ireland.

Medtronic moved its headquarters to Dublin, Ireland, in January.