Federal and state regulators agreed to a $2.8 million settlement with medtech titan Medtronic (NYSE:MDT) to close the books on a years-old concern over insulin infusion pumps.

The settlement puts to rest a 2011 lawsuit joined by 36 states and the federal government, spurred by whistleblower complaints that Medtronic was illegally soliciting Medicare and Medicaid patients to replace their insulin pumps. Such direct solicitation is a violation of a federal Anti-Solicitation Rule and similar state laws, according to a notice from the Pennsylvania Attorney General.

"The inquiry was specific to historical sales practices related to Medicare and Medicaid reimbursement of replacement insulin pumps," Medtronic spokeswoman Cindy Resman told MassDevice.com today. "Medtronic makes no admission that any activities were improper or unlawful and is committed to appropriate sales practices."

The federal government claimed about $327,000 of the settlement award, with the rest divided up among the states, including California, Texas and Indiana.