Stryker (NYSE:SYK) and Alliant Enterprises agreed to pay a collective $1 million but admitted no wrongdoing in settling a whistleblower lawsuit alleging that they overcharged the U.S. Veterans Affairs Dept. for medical equipment.

The lawsuit, unsealed this month in the U.S. District Court for Central California, was filed by a 20-year Stryker employee who oversaw national accounts for the medical device maker.

Gary Gustafson sued Stryker and Alliant in October 2008, accusing the duo and Alliant owner Robert Taylor of concealing the fact that Stryker, not Alliant, was the actual manufacturer of the devices the government was buying, according to court documents.

"Those knowingly false statements, representations and omissions were intended to be conveyed to the government and to influence the government’s decisions," according to the lawsuit. "Based on the defendants’ fraud, the government sustained damages by paying prices for medical and surgical supplies that it otherwise would not have purchased or purchased at those prices."

Stryker agreed to pay $911,219 to settle the lawsuit, according to federal prosecutors; Alliant paid $151,215 to put its portion of the case to bed.