Medtronic, the third largest medical device company in the world, will pay about $4.4m to settle a United States lawsuit accusing the Dublin-headquartered company of giving Asian medical devices to the American military as made in Tennessee.

According to reports, the lawsuit was filed by three Memphis whistleblowers. According to them, Medtronic funneled medical devices that were made in India, Malaysia and China into its distribution center in Memphis for relabeling.

As per the filed lawsuit, the company has sold the devices to the United States Department of Defense and the United States Department of Veteran Affairs from January 2007 to September 2014.

In a statement, the United States Justice Department stated that the medical device company has been accused of selling products to the United States that were manufactured in China, India and Malaysia. The federal executive department of the US government stated that such devices are prohibited in the US under the county's Trade Agreements Act (TAA). According to the federal law, devices sold to the US military should be manufactured in the United States or its international trading partners.

Medtronic has executive offices in Ireland and operational headquarters in suburban Minneapolis. It became Ireland's largest company when it completed its more than $49 billion acquisition of Dublin headquartered surgical supplies group Covidien. That time, the company moved its corporate headquarters to Ireland.

In a recent statement, the company stated, "This resolution focused on a limited number of accessories and surgical instruments used in spinal surgeries that were provided to Medtronic by third-party suppliers and were manufactured in China or Malaysia". A great majority of the company's products are made in the United States and in its trading partners like Ireland and Mexico, as per the company.