Michigan is expected to receive a $2.3 million share of a $500 million settlement of claims that an India-based pharmaceutical manufacturer distributed adulterated drugs.
Michigan's Attorney General Bill Schuette announced the terms of the deal Thursday.
The complaint says that Ranbaxy knowingly made and sold generic products whose quality and purity didn't meet U.S. Food and Drug Administration standards. Ranbaxy is based in Gurgaon, India.
Schuette's office says the adulterated drugs caused false or fraudulent claims to be submitted to Michigan's Medicaid Program.
He says Ranbaxy will pay $350 million in civil damages and penalties as well as $150 million in criminal fines and forfeitures. About $267 million will go to Medicaid programs, funded by the federal government and the states.