Coloplast, a medical supply and pharmaceutical manufacturer, has agreed to pay approximately $14.5 million to resolve allegations that the company violated laws and contract requirements in sales to the VA from 2009 to 2017. Coloplast self-reported the alleged violations and cooperated with the government to reach the settlement. The company allegedly violated the Trade Agreements Act by reporting incorrect countries of origin for several Coloplast-manufactured products and by allowing some products to remain on the contract after switching manufacturing locations to non-designated countries. Coloplast also allegedly violated the Price Reductions Clause by failing to apply discounts on certain items pursuant to contracts with the VA, which led to overbilling for some products.
“This settlement is significant in both its monetary value and in the message it sends to other corporations who wish to do business with VA—our nation’s veterans deserve the highest quality products, at the best possible prices available, and that comply with all applicable laws and regulations,” said VA Inspector General Michael J. Missal. “We will continue to work with our partners at the US Attorney’s offices to ensure that VA is treated fairly and appropriately under the requirements of the law.”
