Smith & Nephew paid $11.3 million to settle allegations the company violated the federal Trade Agreements Act, according to a Reuters report.
The whistle blower in this lawsuit will receive $2.3 million and the U.S. government will receive $6 million. The suit claims Smith & Nephew sold devices to the U.S. government saying they were made in the United States when in reality they were made in Malaysia, which doesn't have a trade agreement with the United States, according to the report.
Smith & Nephew is based in London but is a big player in the United States healthcare market. The company launched a new sales model after their recent second quarter financial report. The new model—Syncera—is a strategy to provide lower-cost implants and services to hospitals in the United States.