St. Louis, MO  (KTRS)   A St. Louis area contractor will pay $4 million to settle a lawsuit over allegations that it that it submitted false claims for medical items to the U.S. Department of Veterans Affairs and Department of Defense.

The U.S. Attorney’s office announced on Tuesday the settlement with Earth City-based ICP Medical LLC alleges that the company concealed the Chinese origin of medical supplies and inflated prices.

The government alleged that ICP removed the “Made in China” designations from body bags and other medical supplies, put them in new boxes and added U.S. flag stickers to some packages. Sourcing goods from China is typically prohibited for government contractors.

ICP president Brian Sanders says any improper conduct occurred under prior management and involved employees no longer with the company.