Cochlear Americas will pay $880,000 to resolve allegations that it paid illegal remuneration to doctors that prescribed its devices to Medicare and Medicaid patients, according to the U.S. Department of Justice. The allegations against the company were made in a lawsuit filed by a whistleblower in 2004. The Colorado-based company is a subsidiary of Cochlear Ltd.

In a separate federal case, Cochlear Americas agreed last week to pay $950,000 to settle claims involving its sales program. Dow Jones reports that the company denied the allegations made against its sales program, but agreed to settle to avoid legal expenses.