FOR IMMEDIATE RELEASE                                         CIV
THURSDAY, DECEMBER 7, 1995                         (202) 616-2765
                                               TDD (202) 514-1888

                                 


  UNITED STATES SURGICAL PAYS U.S. $10 MILLION TO SETTLE DISPUTE

     WASHINGTON, D.C. -- United States Surgical Corporation will
pay the United States $10 million to settle allegations it did
not provide the federal government with the same rate of
discounts it gave other customers who purchased surgical
instruments from the company, the Department of Justice announced
today.
     Assistant Attorney General Frank W. Hunger of the Civil
Division said United States Surgical's failure to disclose to
government negotiators accurate, current and complete pricing
information, as it was required by law to do, resulted in higher
costs to government agencies that purchased the items from the
Federal Supply Schedule Contract awarded by the Department of
Veterans Affairs. 
     "We are pleased to be able to reach this agreement,
especially in light of the Administration's emphasis on
procurement integrity," said Hunger.  "This recovery is another
warning to contractors that federal contract negotiation
disclosure requirements will be strictly enforced.  We commend
the efforts of the Department of Veterans Affairs for the able
assistance it provided which made this recovery possible."
     An inquiry by the VA's Office of Inspector General revealed
that United States Surgical offered customers discounts that were
significantly larger than those it offered to the government for
certain surgical hand instruments, staples and extrictors.  
     Today's settlement also resolves claims by the United States
against United States Surgical for overcharges on contracts it
had with the Defense Logistics Agency, which based its pricing of
certain surgical items on VA's inflated Federal Supply Schedule
contract rates.  These contracts were signed about the time of
the Persian Gulf War.
     The total sales to the government on the contracts related
to this settlement were approximately $56 million.
     The Department said the settlement resolves complaints the
United States could have brought against United States Surgical
under the False Claims Act.
                              #####
95-610