LANSING (WWJ/AP) – Michigan is getting $17.2 million after drugmaker Pfizer Inc. agreed to resolve allegations that one of its companies failed to give Medicaid the same discounts it provided to private purchasers of a heartburn treatment.

Michigan Attorney General Bill Schuette on Wednesday detailed the state’s portion of the settlement that totals nearly $785 million.

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“Gaming the system of drug pricing doesn’t work for Michigan taxpayers who paid more than needed to support the Medicaid program,” Schuette said in a statement. “Everyone must obey the law and there are consequences for companies who attempt to circumvent them.”

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The tentative deal that resolves allegations filed by two whistleblowers was first announced in February, but final approval was announced Wednesday by the U.S. attorney’s office in Boston. The case involved alleged conduct by Wyeth before New York-based Pfizer acquired the company in 2009.

Under the terms of the settlement, the federal government will get more than $413 million while state Medicaid programs will share more than $371 million.

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