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Attorney General Mark Vargo

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SOUTH DAKOTA AND MEDTRONIC USA, INC. SETTLE MEDICAID CASE

FOR IMMEDIATE RELEASE: Thursday, December 23, 2021

PIERRE, S.D. -- South Dakota Attorney General Jason Ravnsborg announced today that South Dakota has reached a settlement agreement with Medtronic USA, Inc. (Medtronic) to resolve the state’s share of alleged Medicaid damages arising from the same conduct resolved in Medtronic’s October 2020 federal settlement with the DOJ.

As part of the settlement agreement, Medtronic will pay $400,000 to South Dakota, fully reimbursing the state’s share of alleged Medicaid damages arising from Medicaid claims filed between September 1, 2010, through September 30, 2019. The settlement is neither an admission of liability by Medtronic, nor a concession by South Dakota that its claims are not well founded.

The state’s agreement resolves the state’s share of alleged Medicaid damages at issue in the October 2020 federal settlement agreement related to alleged payments by Medtronic to Carnaval Brazilian Grill, a restaurant owned by a South Dakota neurosurgeon, Wilson Asfora, M.D. The state’s agreement is not based on any additional or new conduct from that which was alleged in the federal settlement.

“Medtronic cooperated with the State throughout this matter,” said Ravnsborg. “In reaching this resolution, we are able to ensure that the South Dakota Medicaid program is made whole.”

This case was handled by the South Dakota Attorney General’s Medicaid Fraud Control Unit, with assistance from the South Dakota Department of Social Services, the U.S. Attorney’s Office for the District of South Dakota, the US Department of Health and Human Services – Office of Inspector General, and the US Department of Justice Civil Division.

Medicaid is a public insurance program that provides health coverage to low-income families and individuals, including children, parents, pregnant women, seniors, and people with disabilities; it is funded jointly by the federal government and the states.

The South Dakota Medicaid Fraud Control Unit receives 75 percent of its funding from the U.S. Department of Health and Human Services under a grant award totaling $532,017 for Federal Fiscal year 2022. The remaining 25 percent, totaling $177,339 for FY 2022, is funded by South Dakota.

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The Office of the Attorney General is the chief legal officer for the State of South Dakota and provides legal advice to agencies, boards, and commissions of the State as well as representing the State in state and federal court. The Office of Attorney General also handles prosecutions, felony criminal appeals, civil matters, consumer protection issues, and issues formal opinions interpreting statutes for agencies of the state. Visit www.atg.sd.gov to learn more.

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