The U.S. Attorney’s Office for the District of Rhode Island announced on May 17, 2023 a $400,000 civil settlement with Zoll Medical Corporation over Chinese-made products sold to the federal government that were required to be made in the USA or a designated country.
The allegations
- Between January 2019 and November 2022, Zoll sold electrocardiogram (ECG) cables used with defibrillators and cardiac monitors to federal buyers, including the Department of Defense, while knowing they were made in China.
- In January 2019, Zoll allegedly told government officials the replacement cables were manufactured in the USA.
- Under the Trade Agreements Act, goods sold to the military or federal buyers must be made in the USA or certain designated countries. China is not one of them.
The settlement
The Chelmsford, Massachusetts company will pay $400,000 under the common law doctrines of payment by mistake and breach of contract, as an alternate remedy under the False Claims Act. Former employee Jing Zhang, who filed the whistleblower suit in 2019, receives $80,000. The settlement is not an admission of liability.
The office said it was its third civil resolution since 2022 over foreign goods passed off to the government as USA-made.
“When corporations choose to supply the American military and American government agencies with goods, the law is clear: we expect those goods to be American made.”
Zachary A. Cunha, U.S. Attorney for the District of Rhode Island
FAQ
What did Zoll sell?
Replacement ECG cables for defibrillators and cardiac monitors.
Which law applied?
The Trade Agreements Act, which bars China-made goods in these federal purchases.
How much will Zoll pay?
$400,000, with $80,000 going to the whistleblower.
Source & credit
Source: U.S. Attorney’s Office, District of Rhode Island, May 17, 2023: “U.S. Resolves Civil Claims Against Medical Device Manufacturer for Falsely Claiming that Chinese Components Sold to the Federal Government Were American Made” (text republished by the FDA).